PharmAthene, Inc. Q3 2010 Earnings Conference Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Ragh Selvaraju - Noble Financial Group - Analyst : Thank you very much for taking my questions. Just a few things. First of all, with respect to the brief from the judge that we are continuing to await, can you give us some color on at what point we might expect it to appear by and how much time you typically would see between the issuance of the brief and the onset of the actual trial, which, as I understand it, is slated to begin in early January? Obviously the judge would need to provide both parties with (inaudible) in advance of the trial date to allow both parties adequate time to prepare correct? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies.

Question: Ragh Selvaraju - Noble Financial Group - Analyst : Could you provide us with some color on what it would mean for the trial context if the judge does uphold all of PharmAthene's claims [in this court opinion]?

Question: Ragh Selvaraju - Noble Financial Group - Analyst : Okay, that's helpful. Then just a couple of quick questions regarding SparVax and eventually some guidance on what we could expect regarding contract revenue for 2011. When do you expect to hear back from BARDA regarding the next potential contract award on SparVax? What's the magnitude of that which you are expecting right now? Could you contextualize that in light of the recent contract award that was previously given to the [Emergent's] product candidate? And also, could you give us any information, perhaps, Charlie, this is a question for you, on what we could expect to see relative to level of contract revenue in 2011 compared to what we've seen in the quarter?

Question: Matt Duffy - BDR Research - Analyst : Hi. Thanks for taking my question. Couple of things. Just in terms of trying to bookend sort of an outcome of the SIGA litigation, is there any range on the damages or the outcome of the trial that you might be able to provide us? For example could the judge go so far as to enforce the original licensing agreement?

Question: Matt Duffy - BDR Research - Analyst : Okay, great. Thanks. That's very helpful. And just in terms of the rBChE program, how far behind the transgenic program is that? And can you talk a little bit about what timelines would look like if DOD ended up going for the mammalian line as opposed to the transgenic?

Question: Matt Duffy - BDR Research - Analyst : Very good. Thanks, guys.

Question: Steve Brozak - WBB Securities - Analyst : Hey, good afternoon, gentlemen. I'm going to jump off the bandwagon here and not really talk too much about what earnings are, but more about the tenor. Because obviously we've just had a pretty interesting set of new elections and you basically just got a situation where you strengthened your relationship with BARDA. Can you talk about the tenor of the relationship with, let's say, the government in terms of contracting and contracting going forward and what you think their interests are? Because obviously a lot of people have been complaining there hasn't been execution in terms of awarding of contracting new technology. And what kind of a spirit you're seeing and how will that benefit you obviously in what's left of 2010 and into 2011? And I'll have one follow-up after that.

Question: Steve Brozak - WBB Securities - Analyst : Okay. That actually leads me to the follow-up, the bookend on the other side. A lot of the projects that you work on are dual purpose in essence. But you don't really see them as the redheaded stepchildren of large pharma because you don't really see them as being necessary until there's some kind of crisis. What do you see with successful project execution of your ability to partner for commercial purposes for some of the products that you're working on, obviously under the auspices of different government agency work? What do you see the possible logical next step that might, how should I put it, strengthen your franchise even more in terms of discussions with large pharmaceutical or more innovative large biotech companies? And I'll jump off the queue after that.

Question: Nathan Colly - Noble Financial - Analyst : Hi, guys. Good afternoon. Thanks for taking the questions. Regarding the SPA ruling with SIGA, do you guys have any thoughts there as far as what would progress there? And have you seen any rulings and precedent cases as far as the affiliate question that's going on now?

Question: Nathan Colly - Noble Financial - Analyst : Okay. And then as far as the case that's going on with SIGA, and you guys are asking for lost profits and royalties and so forth, do you have any particular numbers that you're looking for as far as the lost profits? And what would you expect as a potential royalty?

Question: Nathan Colly - Noble Financial - Analyst : Okay. And then I just have one more question. On rBChE, as far as if you were to manufacture that in mammalian cell, would you indicate a manufacture -- contract manufacturer there? And what do you expect as far as manufacturing that product?