PharmAthene, Inc. (NYSE MKT: PIP), a biodefense company developing medical countermeasures against anthrax, today reported its financial and operational results for the first quarter of 2017.

First quarter and subsequent highlights include:

• On February 3, 2017, PharmAthene paid a one-time special cash dividend of $2.91 per share of PharmAthene common stock. The special dividend, totaling an aggregate payment of approximately $200 million, represents approximately 98% of the after tax net cash proceeds, received from SIGA Technologies, Inc. in satisfaction of a judgment owed to PharmAthene by SIGA.
• On March 13, 2017, PharmAthene established a record date and meeting date for a special meeting of stockholder to vote upon, among other things, the proposal to adopt the agreement and plan of merger and reorganization involving PharmAthene and Altimmune, Inc. PharmAthene stockholders of record at the close of business on March 22, 2017, will be entitled to receive the notice of, and to vote at, the PharmAthene special meeting which will be held on May 4, 2017.

For the three months ended March 31, 2017, PharmAthene recognized revenue of $0.8 million compared to $1.0 million for the corresponding period in 2016. Revenue was derived from an existing contract with National Institute of Allergy and Infectious Diseases (NIAID) for the development of SparVax-L, a next generation lyophilized anthrax vaccine. Revenue recognized to date under this contract is $10.3 million.

Research and development expenses in the first quarter of 2017 were $0.7 million compared to $1.0 million for the corresponding period in 2016. The decrease was primarily due to efforts associated with a stability program related to the NIAID program which were no longer active during the same period in 2017. Similarly, research and development expenses for a tech transfer and the preparation of an engineering batch were at a point of high activity during the first quarter of 2016.

Expenses associated with general and administrative functions were $3.2 million in the first quarter of 2017 compared to $1.2 million in the first quarter of 2016. The increase was primarily due to transaction costs relating to the proposed merger transaction involving Altimmune, Inc., professional fees, and labor costs.

For the first quarter of 2017, the Company's net loss was $2.2 million, or $(0.03) per share, compared to a net loss of $1.2 million, or $(0.02) per share, for the corresponding period in 2016.

Cash and cash equivalents at the end of the first quarter of 2017 were $15.8 million compared to $154.0 at the end of fiscal year 2016.

On September 9, 2014, PharmAthene entered into an incrementally funded contract with the National Institutes of Allergy and Infectious Diseases ("NIAID") for the development of a next generation lyophilized anthrax vaccine ("SparVax-L") which provided for potential aggregate funding of up to approximately $28.1 million, if all technical milestones were met and all eight contract options were exercised by NIAID. NIAID has exercised four options under this agreement providing for performance through December 31, 2017. PharmAthene has been informed by NIAID that it will exercise only one of the additional remaining options under the contract to provide funding for a non-human primate challenge study which PharmAthene believes may be used to support an advanced development funding proposal to the Biomedical Advanced Research and Development Authority ("BARDA"). Work under all exercised options will continue bringing total committed and final funding under the NIAID contract to $15.1 million.

About PharmAthene

PharmAthene is engaged in the development of a next generation anthrax vaccine that is intended to improve protection and safety while having favorable dosage and storage requirements compared to other anthrax vaccines.