Pharming income drops in 2013 but expects sales to grow this year

Dutch biotech firm Pharming Group (NYSE Euronext: PHARM) saw its shares rise 8.7% to 0.60 euros after publishing its preliminary financial results for 2013, showing a significantly lower loss.

Revenues and other income decreased to 7.0 million euros ($9.7 million) from 10.9 million euros in 2012, mainly as a result from lower license fees and receipt of a 7.9 million euro milestone payment from its US partner Santarus (NASDAQ: SNTS) for successful completion of study 1310 in 2012, while 2013 included a 3.8 million euro milestone from Santarus for acceptance for review of the BLA for Ruconest (recombinant human C1 inhibitor) by the US Food and Drug Administration. Sales in 2013 increased to 0.9 million euros, up from 0.8 million euros in 2012.

Total net loss decreased to 14.8 million euros from 24.1 million euros in 2012 as result of a reduction in the loss from operating activities to 6.9 million euros from 17.5 million euros in 2012. Financial income and expenses resulted in a loss of 7.9 million euros up from 6.6 million euros in 2012 mainly as a result of non-cash charges associated with the issue of convertible bonds and warrants and changes in the fair values of the warrants due to re-pricing of the warrants and fluctuations in the Pharming stock price.