Leiden, The Netherlands, July 19, 2010. Biotech company Pharming Group NV
("Pharming") (NYSE Euronext: PHARM) today announces that, following the
settlement agreement of May 2010 with the former DNage shareholders, which
agreement initiated the spin-off of DNage, the spin-off has now become
In May 2010, Pharming announced the initiation of the spin-off of its
wholly-owned subsidiairy DNage ("DNage").Â The specifics of this divestment were
confirmed in an agreement with the former shareholders of DNage (from whom DNage
was acquired by Pharming) ("the settlement agreement"). Â Under this settlement
agreement, Pharming's future earn-out payments due to the former DNage
shareholders of up to â‚¬10 million will be settled through a payment of 5 million
Pharming shares and a 49% share in DNage. Pharming therefore initially keeps a
majority interest of 51% in the share capital of DNage. All parties now signed
the "New DNage shareholders agreement" which implies that the spin-off has
become definitive and DNage ceases to be a wholly-owned subsidiairy of Pharming.
Certain legal formalities such as the transfer of DNage shares and the 5 million
Pharming shares will take place over the coming weeks.
Pharming's initial 51% in DNage is expected to further decrease as and when
DNage secures new specialized investors who will share the risks and rewards by
purchasing newly issued equity in DNage. Until such new financing is completed,
Pharming will provide DNage with an undisclosed but limited bridge funding.
Thereafter, Pharming will discontinue the funding of DNage fully.
The spin-off of DNage is part of Pharming's strategy to focus on the
commercialization of lead product Ruconest for acute HAE attacks, its clinical
development for follow-on indications in the field of transplantation and making
Pharming financially sustainable on the basis of future revenues from these
About Pharming Group NV
Pharming Group NV is developing innovative products for the treatment of genetic
disorders, specialty products for surgical indications, and nutritional
products. On June 24 2010, the European Medicines Agency adopted a positive
opinion for Ruconest(TM) (Rhucin) for the treatment of angioedema attacks.
Market Authorization in the European Economic Area is therefore expected to be
granted in September 2010. The product is also under development for follow-on
indications, i.e. antibody-mediated rejection (AMR) and delayed graft function
(DGF) following kidney transplantation. The technologies of the Company include
innovative platforms for the production of protein therapeutics, including
technology and processes for the purification and formulation of these products.
Additional information is available on the Pharming
About DNage BV
DNage BV owns a unique technology platform in the field of DNA repair which is
at the basis of development of many diseases associated with old age. As the
average life expectancy is still rapidly increasing worldwide, such diseases
represent significant medical, economic and social problems. There is a large
need for new therapeutics and diagnostics to treat, prevent and delay the
development of ageing diseases. DNage currently has one product, ProdarsanÂ®,
which is being tested in clinical studies to treat specific forms of premature
ageing (Cockayne Syndrome). Other programs in earlier phases of development
include a program for neurological diseases (dementia), bone diseases
(osteoporosis) and nutritional products (to delay neurodegeneration). Additional
information is available on the DNage website,http://www.dnage.nl.
This press release contains forward looking statements that involve known and
unknown risks, uncertainties and other factors, which may cause the actual
results, performance or achievements of the Company to be materially different
from the results, performance or achievements expressed or implied by these
forward looking statements.
Ms. Marjolein van Helmond, Pharming Group NV, T: +31 (0)71 52 47 431 or +31 (0)6
109 299 54
Press release (PDF): http://hugin.info/132866/R/1432534/378606.pdf
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Source: Pharming Group N.V. via Thomson Reuters ONE