Pharming publishes First Quarter 2010 Financial Report

LEIDEN, NETHERLANDS, Apr 22 (MARKET WIRE) --
Biotech company Pharming Group NV ("Pharming" or "the Company") (NYSE
Euronext: PHARM) today published its financial report for the first
quarter ended March 31, 2010.

Key financial items

* Secured EUR7.5 million convertible debt financing in early January with
a possibility to extend with an additional EUR2.5 million. This debt will
be converted into equity during the remainder of 2010;

* Authorized share capital was increased from 200 million to 400 million
and nominal value per share was adjusted from EUR0.50 to EUR0.04;

* Operational costs decreased from EUR6.6 million in the first quarter of
2009 to EUR6.2 million in the same period of 2010 as a result of
capitalization of Rhucin(R) development costs in Q1 2010 (EUR 0.2
million) and the timing of various expense items incurred in Q1 2009;

* Increased net loss in Q1 2010 of EUR7.7 million as compared to EUR6.2
million in Q1 2009 primarily stems from a EUR1.9 million profit realised
on convertible bonds settlements in the first quarter of 2009.

Key
financial data (in EURmillion, except per share data) (unaudited)

Quarter Year Quarter
ended ended ended
March 31, December 31, March 31,
2010 2009 2009

Statement of financial position:
Non-current assets (excluding restricted
cash) 27.3 27.1 30.9
Cash and marketable securities, net of bank
overdrafts 3.3 2.3 16.0
Inventories and other current assets 12.6 12.6 12.9
Total assets 43.2 42.0 59.8
Convertible bonds 18.1 9.5 33.5
Other liabilities 19.2 19.2 19.2
Total equity 5.9 13.3 7.1

Statement of income:
Grants and other income 0.2 1.1 0.1
Operational costs (6.2) (29.0) (6.6)
Financial and other income and expenses (1.7) (4.2) 0.3
Net loss (7.7) (32.1) (6.2)

Statement of cash flows:
Net cash used in operating activities (6.3) (24.3) (6.4)
Net cash from/(used in) investment
activities - 4.2 (0.1)
Net cash from/(used in) financing activities 7.5 2.5 (1.0)

Share data:
Outstanding shares at the end of
the period 154,501,037 154,501,037 98,960,156
Weighted average shares outstanding
in the period 154,501,037 116,177,686 98,822,277
Basic and diluted net loss
per share (EUR) (0.05) (0.28) (0.06)

Financial position

In the first quarter of 2010, the Company entered into a 9% convertible
debt financing of EUR7.5 million, with the possibility to increase to
EUR10.0 million, and issued 15,000,000 warrants with an exercise price of
EUR 0.50 and an expiration date of December 31, 2012. This debt will be
converting into equity no later than December 31, 2010. At the end of the
first quarter 2010, as a result of meeting certain conditions in the
investment agreement, the bondholders received an additional number of
3,750,000 warrants, bringing the total number of warrants under the
agreement to 18,750,000, while at the same time the exercise price was
lowered from EUR0.50 to EUR0.40. The maximum conversion price for the
bonds also decreased from EUR 0.50 to EUR 0.40.

On March 30, 2010 the Company's shareholders approved to increase
authorized share capital from 200 million to 400 million and to adjust
the nominal value per share from EUR0.50 to EUR0.04. The approval of the
shareholders was requested due to the Company's limited flexibility to
issue new shares since 154.5 million shares were outstanding with the
main portion of the unissued 45.5 million shares reserved for convertible
debt facilities. These changes were legally formalized on April 1, 2010
as a result of which, at 154.5 million shares outstanding, the Company's
share capital reported at the end of the first quarter 2010 will decrease
with EUR71.1 million from EUR77.3 million to EUR6.2 million with a
corresponding increase of other reserves; the overall effect of the
adjustment on total equity therefore is nil. Overall, total equity of
EUR13.3 million at December 31, 2009 decreased to EUR5.9 million at March
31, 2010; the EUR7.4 million decrease reflects the first quarter 2010 net
loss of EUR7.7 million minus other changes of EUR0.3 million.

In April 2010, the first quarter interest due on the 2010 convertible
bonds was paid through issuance of 407,475 shares; in addition, an
aggregate number of 1,756,564 shares were issued with respect to the
conversion of EUR0.7 million nominal bonds. As a result of these
transactions, the total number of outstanding ordinary shares at March
31, 2010 of 154,501,037 increased to 156,665,076 as per today while the
nominal value of the bonds issued in 2010 decreased from EUR7.5 million
to EUR6.8 million.

Due to the EUR7.5 million cash proceeds of the convertible bonds issued in
January 2010, the Company improved its net cash position from EUR2.3
million at year end 2009 to EUR3.3 million at the end of the first
quarter 2010 with cash used in operating cash flows being fairly constant
at EUR6.3 million compared to EUR6.4 million in the first quarter of 2009.

Financial results

In the first quarter of 2010, the Company's income increased from EUR0.1
million to EUR0.2 million, which in both quarters is exclusively related
to grants.

Operational costs decreased from EUR6.6 million in the first quarter of
2009 to EUR6.2 million in the same period of 2010. The EUR0.4 million
decrease among others reflects EUR0.2 million of Rhucin(R) development
costs capitalized as intangible assets in Q1 2010 compared to none in the
first quarter of 2009. The remaining EUR0.2 million decrease primarily
relates to the timing of Rhucin(R) activities in the first quarter of
2009.

Financial income and expenses in the first quarter of 2010 amounted to a
net expense of EUR1.7 million compared to a net income of EUR0.2 million
in the first quarter of 2009. The difference primarily stems from a
EUR1.9 million profit realised on convertible bonds settlements in the
first quarter of 2009.

Sijmen de Vries, MD, MBA, Chief Executive Officer, commented: ''The first
quarter of 2010 started under challenging circumstances. The convertible
debt, secured at the start of the year, however provided us with
sufficient runway to continue the regulatory processes of Rhucin and
enabled us to execute on our first major commercialisation agreement for
Rhucin, which in turn provided us with an upfront payment (which is not
included in the net cash at the end of the first quarter 2010). We now
look forward to continue to execute on our plans: proceeding with the
Rhucin regulatory processes in Europe and USA, ensuring launch readiness
together with our European partners as well as continuation of our
partnering discussions for territories outside the European Union,
Iceland, Norway, Switzerland and Turkey. In addition we pursue the further
solidification of our financial basis through a combination of further
cost savings and debt or equity financing. In this respect we have now
engaged Kempen & Co and Petercam Bank to jointly investigate the
possibilities of attracting additional funding.''

About Pharming Group NV Pharming Group NV is developing innovative
products for the treatment of genetic disorders, ageing diseases,
specialty products for surgical indications, and nutritional products.
Pharming's lead product Rhucin(R) for acute attacks of Hereditary
Angioedema has passed clinical development stage and the Market
Authorization Application is under review with the European Medicines
Agency. Prodarsan(R) is in early stage clinical development for Cockayne
Syndrome and lactoferrin for use in food products. The advanced
technologies of the Company include innovative platforms for the
production of protein therapeutics, technology and processes for the
purification and formulation of these products, as well as technology in
the field of DNA repair (via DNage). Additional information is available
on the Pharming website,
www.pharming.com

Contact:
Sijmen de Vries, CEO
+31 71 5247 400

The full report including all tables can be downloaded from the
following link:

[HUG#1406614] Q1 Report 2010:
http://hugin.info/132866/R/1406614/360107.pdf

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