PharmAthene secures $13.1 million in equity financing from Panacea Biotec

Under the strategic financing, Panacea Biotec’s subsidiary has purchased approximately 3.73 million shares of PharmAthene common stock at a negotiated price of $3.50 per share. In addition, Panacea Biotec’s subsidiary has received 12-month warrants to purchase up to approximately 2.75 million additional shares of PharmAthene common stock at an exercise price of $5.10 per share.

The $13.1 million investment will increase PharmAthene’s ongoing product development activities, enhance working capital, and provide new resources for corporate growth.

During the next three years Panacea Biotec has agreed not to purchase additional shares of PharmAthene stock without the prior written consent of PharmAthene. Panacea Biotec’s subsidiary will be granted limited rights to participate in future private financings by PharmAthene to maintain its then current ownership level. In addition, PharmAthene will retain full rights to its proprietary information and technology and full management and operational control.

Rajesh Jain, joint managing director of Panacea Biotec, said: “An alliance with PharmAthene presents important strategic opportunities to create value for both of our companies. Panacea Biotec is committed to identifying partners for US distribution of our products.

“We recognize PharmAthene’s strength in the biodefense industry and the core competencies of its management team with respect to vaccine development and commercialization. We are very pleased to participate in this strategic alliance and provide strategic equity financing to PharmAthene to help the company further its business objectives.”