Dutch Financial Journal
11-08-01  (summary)

Headline: PHARMING ASKS DELAY OF PAYS

Amsterdam- The Leiden based  biotechcompany Pharming is 
about to fall. Friday the company, known from the GE bull Herman, 
asked for a delay of obligations to pay debts. The financial director is 
suspended and the board of commissioners has resigned.

The salary of the 230 employees for August is not guaranteed.
According to Rein Strijker, member of the board of directors, the 
company has come into acute problems after a loan of Euro 15 
million got cancelled in the last moment. "The papers were signed, 
but the financer wanted extra guarantees. We could not possibly 
give them." The new loan, about which negotiations took place with 
an American bank, was needed to overcome the period to the 
introduction of the first medicine. That medicine, against the deadly 
Pompe muscle disease, should have been ready in the course of 
next year. (Actually this is not correct. Pharming's "medicine" did 
not perform very well. WdL)     

The final blow for Pharming came thursday night, when director 
Herschbach received an offer from the USA from a possible buyer. 
Strijker: "The board of commissioners considered that offer as so 
low, that they decided to ask for delay of paying obligations. From 
such a position we are a bit stronger in coming negotiations about 
a take-over."

Earlier this week the American company Novazyme, which also works 
on a medicine for Pompe's disease, was bought by Genzyme. Pharming 
has already worked for years with Genzyme. Genzyme is one of the main 
shareholders of Pharming. Analysts explain the move from Genzyme 
to buy Novazyme as a motion of distrust towards Pharming. 

Pharming in 1998 went to the stock exchange and raised Euro 116 
million.