ANNUAL REPORT 2009

Marjolein V Helmond@Marjolein_Lapto

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• Publié par: ecomejex
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• Langue: Français

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ANNUAL REPORT 2009
PHARMING
PHARMING
CONTENT
2 - 130 CONTENT Page

Pharming in a nutshell ………………………………………………………….……………………………… 5
Mission and vision ……………………………………………………………………………………………….. 5
Strategy …………………………………………………………………………………………………………… 5
Technology ……………………………………………………………………………………………………….. 5
Products6
Selected financial data ………7
Key developments 2009 …………………………………………………………………………………………. 8
Expectations 2010 ……………9

Letter from the CEO ...…………………………………………………………………………………………… 11

Information for Shareholders and Investors ..…………………………………………………………….… 15
Major shareholdings …………………………………………………………………………………………….… 15
Share information and trading data ..…………………………… 15
Share performance 2008 and 2009 ..… 16
Financial calendar for 2010 …… 17

Corporate Social Responsibility …………………………………………………………………………….… 19

Management of the Company ………………………………… 25
Management Structure ……….. 25
Management Powers and Function ……………………………. 25
Composition Board of Management…………………………………………….… 26
Composition Board of Supervisory Directors ………………………………………………………………….. 27
Supervisory Board Committees ………………………………… 29

Management Report ………………………………………………………………………………………….…. 31
Operating review 2009 …………………………………………………………………………………………… 31
Research and Technology ………………………………………………………………………………………. 36
Financial review 2009 ……… 39
Outlook 2010 …………………42
Statements of the Board of Management ……………………………………………………………………… 43

Corporate Governance and Risk Management ……………………………………………………………. 45

Supervisory Board Report . 53
Report of the Board of Supervisory Directors …………………………………………………………………. 53
Report of the Remuneration Committee ………………………. 56

Glossary ………………………………………………………………………………………………………….. 61

Consolidated Financial statements ……………………………. 67
Notes to the Consolidated Financial statements ……………………………………………………………… 75
Company Financial Statements ………………………………117
Notes to the Company Financial Statements …………………………………………………………………. 121
Auditor’s Report ………………………………………………………………………………………………….. 127
Other Financial Information …………………………………………………………………………………... 129
3 -130 PHARMING
PHARMING IN A NUTSHELL
4 - 130 PHARMING IN A NUTSHELL

MISSION AND VISION
Pharming is a biotech company that aims to address unmet medical needs by developing innovative protein
therapeutics. These products are developed on the basis of Pharming's proprietary production technology. The
Company's lead product candidate, Rhucin®, is the recombinant human C1 inhibitor (rhC1INH) protein for
treatment of acute attacks of Hereditary Angioedema (HAE), a genetic disorder. The Company is also exploring
applications of rhC1INH in the area of organ transplantation. In addition, the Company seeks to pursue the
development of other products in its pipeline, including rhFIB (recombinant human fibrinogen), hLF (Pharming’s
human lactoferrin product) and rhCOL (recombinant human collagen), mainly through strategic alliances and
partnerships with interested parties. Through the acquisition of DNage, the Company became also active in the
field of ageing diseases through DNA repair. In the first quarter of 2010, it was announced that third party
investors are being sought to finance the further development of DNage. As a result of such investments,
Pharming expects to eventually retain a minority interest in DNage.

Pharming’s mission is to be an international specialty pharmaceutical company focusing on the development and
commercialization of therapeutic products, initially for specific rare diseases or other significant medical needs
(orphan drug development), and secondly for larger indications with considerable market potential.

STRATEGY
Pharming intends to lower its risk profile by broadening and further developing its product pipeline and thus
diversifying the risk of being dependent on one major product whose fortunes affect the share price. In addition,
the Company is pursuing the development of its products through strategic alliances and partnerships.

Pharming’s strategy to become an international specialty pharmaceutical company is based on three pillars:
1. Product development strategy: Pharming focuses on demonstrating early proof of concept for indications
with high unmet medical need. Pharming is developing and intends to register itself those indications which
fit with its capabilities and resources. For higher risk programs, or programs targeting larger indications,
Pharming is pursuing strategic co-development partnerships.
2. Commercialization strategy: Pharming intends to form strategic partnerships to obtain access to other
required competencies, such as marketing and sales. Pharming explores both partnering possibilities for
commercialization of its products and the option of setting-up its own commercialization infrastructure.
3. Financing strategy: Pharming focuses on the aggressive development of selected products from its pipeline
and as such on generating value both in the short-term and long- term. The Company is, for its long term
existence, exploring opportunities to further improve its financial position. These include the identification of
Private Equity and/or Venture Capital investors to participate in its wholly owned subsidiary DNage,
identification of development and commercialization partnerships, such as the recently closed collaboration
with Swedish Orphan Biovitrum for Rhucin, generating both upfront and regulatory milestone payments and
future royalties from sales and in addition, financing by means of debt and/ or equity instruments.

TECHNOLOGY
Pharming has developed a transgenic technology platform, which is an effective means of producing complex
human proteins efficiently, yielding high quality products. This platform is particularly useful for proteins whose
production in other systems is not very efficient or which require very specific modifications, during the production,
for them to be active.

5 -130 PHARMING
PRODUCTS
Pharming is developing innovative products for the treatment of various specialty disorders, including genetic
disorders, diseases associated with the immune system, and nutritional products. The Company continues to
make progress in its product pipeline, with several products in clinical stage of development.

Product Indication Status
Rhucin® Acute HAE MAA under review with EMA
Pre-BLA discussions
Recombinant human C1 inhibitor (rhC1INH) AMR. in kidney transplantation Preparing Phase II
DGF in kidney transplantation Preparing Phase II
Prodarsan® Cockayne Syndrome Preparing phase II
Human lactoferrin (hLF) Nutritional applications Commercialization

Recombinant human fibrinogen (rhFIB) Fibrinogen deficiency Pre-clinical
Recombinant human collagen type I (rhCOL) Tissue repair Research
Other DNage products Ageing diseases Research

Lead product candidate, Rhucin®, is the recombinant human C1INH protein for treatment of acute attacks of
HAE, a genetic disorder. It has undergone an extensive development program including the development of a
robust and high quality production process (in milk of rabbits), a high quality purification process yielding pure
product with consistent specifications, a non-clinical program, a toxicology program, a clinical program involving
hundreds of administrations in humans and various other development programs as required by the competent
authorities. An application for market authorization in the European Union ("EU") was submitted in September
2009 and a final decision from the relevant committee can be expected in the third quarter of 2010. Pharming has
initiated pre-BLA discussions with the FDA (US Food and Drug Administration) end of 2009. Based on the
outcome of these discussions, during HY1 2010, Pharming will inform the market on the timing for the submission
of the BLA (Biologics License Application).

The same product (rhC1INH) is also currently being developed for prevention and acute treatment of graft
rejections associated with human organ transplantation (i.e. AMR. or Antibody-mediated rejection and DGF or
Delayed graft function). In addition, rhC1INH will be further investigated in pre- clinical models for treatment of
diseases caused by so-called ischemic reperfusion damage (including certain cardiovascular diseases) and
macular degeneration. A product to treat congenital and/or acquired fibrinogen deficiency is in pre-clinical stage of
development.
Human lactoferrin has been developed by the Company for use in human nutrition. The development of this
product has been largely completed and further commercialization is now dependent on upscaling of production
and commercial activities by (potential) partners. One such partnership in which the Company engaged during the
course of 2008 was with Aslan Group of Turkey. Since initiation of this partnership several complications have
hindered progress of the partnership. Alternative solutions are under evaluation.

In view of the Company’s intention to separately finance its DNage business unit, the technology and products of
this unit, albeit wholly owned in the period covered by this report, are being discussed separate from