Pharmion says cash adequate to continue in-licensing, develop current pipeline

By Jennifer Lanning Drey

Portland, Ore., Oct. 25 - Pharmion Corp.'s cash on hand, along with the cash generated through its commercial business, will provide adequate funding for the company to continue its in-licensing strategy and develop its current line of products, chief financial officer Erle T. Mast said during the company's quarterly earnings conference call on Wednesday.

The company has generated $10 million of cash during the first nine months of the year, excluding upfront and milestone payments made as part of its licensing deals for Satraplatin and the HDAC-inhibitor product candidate MGCD0103, Mast said.

Pharmion reported cash, cash equivalents and short-term investments of $187.8 million at Sept. 30 and no outstanding debt. The company had $188.5 million at June 30.

Pharmion expects to end the year with cash and investments of between $180 million and $185 million, up from its previous guidance of $170 million to $175 million, Mast said.

The company reported record sales of $61.6 million for the third quarter, which it attributed primarily to sales of Vidaza.

"This was an extremely encouraging quarter for Pharmion," chief executive officer Patrick J. Mahaffy said during Wednesday's call.

Upcoming milestones expected for Pharmion include the filing of a European Marketing Authorization Application for thalidomide for first-line multiple myeloma in the first quarter of 2007, Mahaffy said.

Within the next six to nine months, Pharmion also plans to file an application in Europe for Satraplatin based on data from a pivotal phase 3 registration trial, which demonstrated highly statistically significant data for progression-free survival in 950 patients with hormone-refractory prostate cancer.

Pharmion is a Boulder, Colo.-based biotechnology company.

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