Pharmathene Q4 2009 Earnings Conference Call Transcript

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

Question: Jason Cantor - RBC Capital Markets - Analyst : Oh. Hey, thanks for taking my call. My question -- a couple questions around the SIGA issue. So first, are there specific subject matter that are at the basis for the summary judgment or is it just a summary judgment to throw the whole thing out because we've seen that the motion dismissed was denied? So, is this on a particular issue in the case? 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: Jason Cantor - RBC Capital Markets - Analyst : Okay. And on those damages, how -- what kind of assumptions do you use to get the damages of $1 billion considering no drug has been sold yet and the market cap of SIGA is only $300 million, and that's 3 times the value of the company, so what's the basis for damages at this point?

Question: Jason Cantor - RBC Capital Markets - Analyst : Okay. And then finally, what level of royalties are you seeking against them in lieu of this $1 billion?

Question: Jason Cantor - RBC Capital Markets - Analyst : That's reasonable. Okay. Thank you very much.

Question: Steve Brozak - WBB Securities - Analyst : Good afternoon, gentlemen, pardon my voice. I'll limit it to one question to save my voice and not have other people have to hear me. Can you give us some color on what -- obviously, everyone's caring about in terms of the protest. What ramification does it have as you see it? Right now, you're going to continue development regardless, so you're looking at a situation where the development will continue to proceed. What's the downside for right now and what would you see in terms of the effect in terms of the progression of the program? I'll limit it to that and let you answer. 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: Steve Brozak - WBB Securities - Analyst : Great. Thanks very much.

Question: Debra Fiakas - Crystal Equity Research - Analyst : Thank you. A couple of housekeeping questions, could you let us know what your cash usage was either for the fourth quarter or for the year?

Question: Debra Fiakas - Crystal Equity Research - Analyst : Excellent. Thank you. And then also Charlie, in regard to the receivables, the two categories, other receivables including unbilled ones, could you give us some kind of detail or just a little bit of color on what is there and when would you expect to collect on those receivables?

Question: Debra Fiakas - Crystal Equity Research - Analyst : Okay. So, from your response can I infer that none of these receivables are sort of stuck in limbo because of project suspensions? 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: Debra Fiakas - Crystal Equity Research - Analyst : Excellent. Thank you. And then in regard to Valortim, it sounds like from your description with the study that you stopped, relating to the use of Valortim with Cipro, that this is a very important study. It's very important that you prove that Valortim work with Cipro or is it simply that you must prove that it works with some other sort of antibiotic or prophylaxis? I guess my question really is how vital is it that Valortim be proven effective with Cipro?