Pharming: Back from the Brink of Bankruptcy

01 Oct 2003

• By Hazel Dawson

Two years ago it looked as if all was lost at Pharming: escalating costs for its Pompe's disease program and indebtedness to its JV partner Genzyme forced it into legal moratorium in August 2001. Today, Pharming's back in the game; indeed, its new management, slimmed down operations and heightened focus on cost control mirrors the many other European biotechs trying to adapt to the harsh winter. But Pharming could have avoided near death by not turning its development partner into its biggest creditor. Still, the firm's turnaround-even this far-shows a reassuring willingness among Europe's investors to assume risk and give companies another chance.

Pharming Group NV was spun out of GenPharm International Inc. (now part of Medarex Inc.[See Deal]) in 1995 to develop transgenic animals whose milk would yield therapeutic proteins [See Deal]. The idea was that transgenic production methods would offer advantages over harvesting proteins from human serum, such as a more dependable supply, lower costs and a reduced risk of the transfer of human viral diseases to patients.

Pharming's prime focus was alpha glucosidase, made from rabbit milk. Unlike the firm's other proteins, this could not be produced...