Anthrax – the Unacceptable RiskMay 5, 2011

In the wake of the killing of Osama bin Laden by U.S. forces a number of national security and Congressional leaders are expressing concern about the increased risk of a bioterrorist attack. An Op Ed in the Washington Post discusses this risk: http://www.washingtonpost.com/opinions/osama-bin-laden-is-dead-now-what/2011/05/11/AF3sBU1G_story.html

While the death of Osama bin Laden has struck a major blow to al Qaeda, security experts are concerned that it may cause al Qaeda or bin Laden sympathizers to seek retaliation. Such an attack could come from either organized elements of the al Qaeda network, including a number of spin off and aligned groups, such as al Qaeda in the Arabian Penninsula, al Qaeda in the Islamic Maghreb, and al-Shabab.

Alternatively, such a retaliatory attack could be waged by a lone attacker, in particular a U.S. citizen—or homegrown terrorist—who simply sympathizes with bin Laden and al Qaeda, or is somehow otherwise drawn to the moment. CQ quotes Sen. Joseph Lieberman, chairman of the Senate Homeland Security and Governmental Affairs Committee, saying, “My own great concern in the days ahead is that a so called lone wolf, a single individual who has been radicalized, will now mobilize himself or herself to take action here at home against the American people.”

Of the potential retaliatory attacks that these experts are most concerned about is a possible bioterrorist attack, in particular anthrax.

Sen. Tom Harkin, the chairman of the Senate Appropriations subcommittee that oversees public health, released a statement saying that despite progress in biodefense since Sept. 11, “more needs to be done. A bioterrorism attack is a very real threat, yet we are still using the same anthrax vaccine that was developed forty years ago.”

Harkin’s concerns about the threat of anthrax are well founded.

While we have eliminated the number one terrorist threat in bin Laden, the so-called “CEO of al Qaeda's anthrax program,” Yazid Sufaat, remains at large.

According to the 9-11 Commission, early in 1999 Sufaat was taped by al Qaeda’s number two, Ayman al Zawahiri, to lead an effort to jumpstart the terror group’s anthrax development program. Sufaat then spent several months seeking to develop weaponized anthrax in a laboratory near the Kandahar Airport, which was at the time an al-Qaeda stronghold. According to Rolf Mowatt-Larssen, a former senior Central Intelligence Agency official who led the government's efforts to track terrorist Weapons of Mass Destruction programs, “in August 2001, Zawahiri personally inspects Ahmed's completed laboratory in Kandahar. He separately meets with Sufaat for a weeklong briefing on the reportedly successful efforts to isolate and produce a lethal strain of anthrax.” In December of 2001, with the U.S. moving in to Afghanistan, Sufaat returns to Malaysia, where he is arrested by the Malaysian authorities. However, in 2008, the Government of Malaysia subsequently releases him. As of April 2009, Interpol lists him as free and living in Taman Bukit Ampang, Malaysia.”

Additionally, it should be noted that a bioterror attack is the sort of high impact, high visibility attack that fits with al Qaeda’s overall modus operandi. The death of bin Laden only amplifies the desire among his supporters to strike out in some dramatic fashion, and an anthrax attack would certainly fall within that category.

All this together reminds us that while the face of al Qaeda, and indeed all global terror, is no more, we remain at war with a global, ideologically-driven terrorist network that now, perhaps more than ever, wants to harm us. While we should give thanks for the elimination of bin Laden, we cannot become complacent. Until we have in hand new medical countermeasures that can effectively remove weapons like anthrax from the terrorists’ arsenal, we remain unacceptably at risk.

At PharmAthene we remain ever more dedicated to that task and committed to working with our partners in the U.S. government to strengthen our national security.

Terps for TroopsMay 3, 2011

Showing Our Support

Patriotism, courage, and commitment are three characteristics that every U.S. soldier possesses.  Their selfless dedication to our nation enables each of us to enjoy the freedoms that we frequently take for granted.  With this in mind, we set out with a goal for our organization to find a way to give back to such a deserving group of people.

A few months ago, we were approached with the opportunity to become the presenting sponsor of the Terps for Troops 5K.  The race, which was held on the campus of the University of Maryland on April 9th, benefitted the Wounded Warrior Project, a non-profit that provides support and assistance to soldiers that have been injured in combat.  We felt this race would be the perfect opportunity to show PharmAthene’s support for our troops.

After months of planning, race day finally arrived.   My daughter and I joined 30 of my fellow colleagues and their families as “Team PharmAthene.”  We ran in the race or walked a one-mile loop around the campus to show our gratitude to and support for America’s heroes.   It was a cold, rainy day, but that didn’t deter any of the supporters; over 150 runners participated in the race.   After the national anthem was sung by a UMD student, and the colors were presented by the ROTC, Bonnie Bernstein, ESPN personality and UMD alumna, officially started the race.

The route comprised challenging hills and scenic trails.  While running, we were taken on a tour of Maryland’s campus, passing prominent landmarks including Byrd Stadium, the Comcast Center, and McKeldin Library, concluding in front of Stamp Student Union.

The race was a terrific experience for ‘Team PharmAthene.’  We were very pleased to be joined by some of our colleagues at the Department of Defense, who also participated in the race.  I am very proud of my colleagues’ dedication to the event and this great cause. 

The race also gave us an opportunity to meet first hand several of our nation’s military personnel, including LCPL Daniel Garner.   Daniel was wounded last June while serving with the Marines in Afghanistan and is still recovering today.   The race was organized by his brother, Ben Garner, as a way to show his gratitude to the Wounded Warrior Project for its role in assisting in Daniel’s recovery.   Speaking with Daniel reinforced for me the very important work we at PharmAthene do to safeguard our nation’s citizens and military. 

As a biodefense company, the men and women of our nation’s military – people like Daniel – depend on us, and we won’t let them down.  Daniel’s story and triumphs provided a first-hand example of the dedication our troops have for our nation and showcased the importance of organizations like the Wounded Warrior Project.

I am very proud that PharmAthene was presented with an opportunity to be the presenting sponsor of the Terps for Troops 5K race.  In total, we raised over $5,000 for the Wounded Warrior Project, which will provide additional support for existing programs, as well as assist with the creation of new programs to help aid our soldiers’ recovery.   It was an honor to be a part of this race, and on behalf of PharmAthene, I would like to say ‘thank you’ to all of the troops who have served or are currently serving our country.

For more information about the Wounded Warrior Project, please visit:  www.woundedwarriorproject.org.

Eric Richman
President and Chief Executive Officer
PharmAthene, Inc.

Biodefense Budget Moves Forward in Proposed BudgetsMarch 3, 2011

The biodefense research activities at BARDA have been spared cuts in the recent budget proposals from both the House Republican Majority (FY 11 Continuing Resolution) and the Obama Administration (FY 12 budget).

This comes as positive news for PharmAthene during a period in which both the House Majority and the Administration have proposed heavy cuts to many sectors (e.g., the House Republican proposed budget would cut the NIH budget by $1 million).

Some had expected that the House budget might zero out BARDA's Special Reserve Funds (SRF) funds, which have been used to support both procurement and advanced development activities.

The House FY 11 GOP proposal includes $318 M transferred from the SRF for advanced research and development, an amount slightly above the FY 10 budget. The Administration proposal includes $665 M transferred from the SRF for both biodefense related activities.

The Administration's budget justification document also notes that it plans to provide funding in FY 12 to continue the advanced development of both anthrax vaccines and anti-toxins. From the Administration's budget proposal:

Specifically, funding requested at this level will support continued advanced development of anthrax vaccine candidates and anthrax polyclonal and monoclonal antitoxins on new and existing BARDA contracts. The funding will allow candidate anthrax vaccines and therapeutics under development to progress toward licensure, thus increasing preparedness for a high-priority threat. In addition, funding is being requested to increase manufacturing capacity for the currently licensed vaccine, bringing the Federal government closer to the goal of acquiring enough anthrax vaccine to protect 25 million people

While neither proposal is expected to pass in its current form, we applaud the government's unwavering commitment to our national security interests and ongoing support for important medical countermeasures to keep Americans safe at home and on the battlefield.

Secretary of Homeland Security Tells House Panel that Terrorist Threat is at its Highest Since 9-11February 9, 2011

Testifying before the House Committee on Homeland Security, on February 9, 2011, the Secretary of Homeland Security, Janet Napolitano, stated that the terrorist threat against America is "at its most heightened state" since the September 11, 2001 attacks.

Secretary Napolitano noted that al Qaeda and the Taliban, and individuals inspired by these terrorist groups, have already attempted a number of attacks against the United States. She also stressed that there is a real risk that someone already inside the United States might seek to carry out an attack.

The Secretary also testified that while we cannot fully seal our nation off or guarantee against a future attack, œwe continue to do everything we can to reduce the risk of terrorism in our nation.

While the Secretary's testimony did not delve in to specific types of threats, it is important to underscore that these groups have sought to obtain biological weapons, in particular anthrax.

Given the heightened threat the nation now faces, it is critical that the United States swiftly develop and stockpile a more effective anthrax vaccine. Numerous studies have shown that anthrax is among the most significant WMD threats we face. The Homeland Security Council's National Planning Scenario for an anthrax attack predicts that such an attack would result in 328,848 exposures; 13,208 untreated fatalities; and 13,342 total casualties.

PharmAthene is committed to working collaboratively with the U.S. Government to develop innovative new biodefense countermeasures to protect our nation's citizens both at home and on the battlefield.

The Heritage Foundation Weighs in on Defense BudgetFebruary 4, 2011

This week The Heritage Institute, a well-respected conservative think-tank, weighed in on potential cuts to the defense budget:

http://www.heritage.org/Research/Reports/2011/02/Taking-a-Scalpel-to-the-Defense-Budget

Heritage suggested that the Congressional members focus their attentions on the extent to which various programs support the overall mission of the Department of Defense and our national security. Heritage also urged the Congress to be extremely diligent for instances of waste, fraud and abuse.

It is interesting to apply Heritage's analysis to biodefense.

Clearly biodefense programs are central to the Defense Department's mission and national security. Absent effective ways to counter threats such as smallpox and anthrax our military will remain unacceptably at risk. Any rogue nation or terrorist group that obtains these weapons has the capability of inflicting significant losses on our troops. Along these same lines, our biodefense programs are vital to our ability to secure the American homeland”another key element to national security.

With respect to waste, fraud and abuse, the typical biodefense program runs extremely efficiently”we know this first hand at PharmAthene. Our programs receive government funds, but we also operate subject to the market forces of the financial markets and exchanges.

Certainly, recent reports have focused on at least one example of a contractor whose margins vastly exceed those of the typical defense contractor. This is not the norm in the industry. To the extent that the Congress needs to do oversight, and investigate abuse, these efforts should be focused on the specific examples and not throw the baby out with the bath water.

Pharmathene Ceo Eric Richman Participates in Celebratory Nasdaq Closing Bell Ceremony to Honor Deloitte Fast 500 Winning CompaniesDecember 8, 2010

PharmAthene Ranked 3rd Fastest Growing Technology Company in the Greater Washington Region in Deloitte's 2010 Technology Fast 500

PharmAthene, Inc. (NYSE Amex: PIP) was recently ranked 3RD fastest growing technology company in the greater Washington region on the Technology Fast 500, Deloitte's ranking of 500 of the fastest growing life sciences, technology, media, telecommunications and clean technology companies in North America. The ranking is compiled from nominations submitted directly to the Fast 500 web site, and public company database research conducted by Deloitte. Technology Fast 500 award winners for 2010 were determined based on percentage fiscal year revenue growth during the five year period from 2005 to 2009.

Deloitte representatives and representatives from the winning companies AEEC, LLC, Altum, Inc., Hughes Communications, Inc., Insmed Incorporated, MicroTech, and PharmAthene, Inc. of the Greater Washington Deloitte Technology Fast 500 program and local sponsors NASDAQ OMX and SmartCEO pose in front of the 7-story tall NASDAQ tower illuminating Times Square after the NASDAQ Closing Bell Ceremony on Monday, December 6th. (© 2010, The NASDAQ OMX Group, Inc.)