Dutch firm Pharming initiates DNage divestment, to focus on Rhucin

Netherlands-based biotechnology company Pharming Group NV said yesterday that it has initiated the process to reduce its financial interest in its wholly-owned subsidiary DNage BV in order to reduce the cash need and fully focus on the commercialization of its lead product Rhucin (recombinant human C1 esterase inhibitor), which is currently being reviewed by the European Medicines Agency (EMEA), with a decision expected in the third quarter of this year.

As a first step of this process, the company has reached an agreement with the former shareholders of DNage from whom DNage was acquired by Pharming in 2006. Upon completion of this first step of the divestment process, Pharming's future earn-out payments due to the former DNage shareholders of up to 10 million euros ($12.4 million) will be settled by the issue of 5 million Pharming shares and a 49% stake in DNage. Pharming therefore initially keeps a majority interest of 51% in the share capital of DNage. This is expected to decrease after DNage secures new investors. Until such new financing is completed, Pharming will provide DNage with limited bridge funding. Thereafter, Pharming will discontinue the funding of DNage.

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