Pharmathene Q4 2007 Earnings Conference Call Transcript

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

Question: Gary Siperstein - Eliot Rose - Analyst : Hi, David. It's Gary Siperstein with Eliot Rose.

Question: Gary Siperstein - Eliot Rose - Analyst : How you doing? Congratulations on a nice close to the year and the exciting M&A with Avecia. That's where my question lies. You mentioned in the press release about the DoD cessation of funding on the plague product and the adjustment of terms. Can you just give us some color on that, please?

Question: Gary Siperstein - Eliot Rose - Analyst : Okay, fair enough. And I know you talked on the Avecia call about some of the funding that PharmAthene experiences itself with the government covering a large portion of it. Can you -- just going forward, do you have sort of an '08 game plan and where do you expect -- exclusive of M&A, where do you expect cash to be at the end of the year with the Avecia burn? 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: Gary Siperstein - Eliot Rose - Analyst : Okay, so everything else being equal going forward, Avecia, their expenses will be covered approximately 94%, and the 6% that's not covered will not change your $1.5 million a month appreciably? Is that what you're saying?

Question: Gary Siperstein - Eliot Rose - Analyst : Okay. And does that take into account the recent news on the plague situation?

Question: Gary Siperstein - Eliot Rose - Analyst : Okay. And in terms of the debt, I guess current debt and long term debt of approximately $20 million, I know you mentioned the roughly $10 million venture loan and so forth. The other $10 million, is that the convertible preferred?

Question: Gary Siperstein - Eliot Rose - Analyst : Okay. And the conversion price is, just refresh me? 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: Gary Siperstein - Eliot Rose - Analyst : Okay. And have you guys begun negotiating with them on perhaps an adjustment to the conversion to eliminate that note?

Question: Gary Siperstein - Eliot Rose - Analyst : Okay. And just last question and then I'll get back in queue and give someone else a chance. David, can you -- I know you don't want to give anything away to the competition, but as you move forward post Avecia and you're looking at in-licensing, other M&A and co-development, can you give us any more color than that on a very general high level to give us some flavor?

Question: Gary Siperstein - Eliot Rose - Analyst : Fair enough. Thank you.