NEW YORK, July 31, 2014 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (Nasdaq:SIGA), a company specializing in the development and commercialization of solutions for serious unmet medical needs and biothreats, today reported its financial results for the three and six months ended June 30, 2014.
Revenue for the three months ended June 30, 2014 was $651,000, compared with $965,000 in the second quarter of 2013. The operating loss for the quarter was $4.7 million, compared with $5.6 million in second quarter of 2013. Net loss per share, which included a $1.8 million income tax benefit, was $0.06 per share for the three months ended June 30, 2014. In comparison, net loss per share, which included a $2.0 million income tax benefit, was $0.06 per share for the three months ended June 30, 2013.
Revenue for the six months ended June 30, 2014 was $1.2 million compared with $2.3 million for the corresponding 2013 period. The operating loss for the period was $10.4 million, compared with $11.4 million in the first half of 2013. Net loss per share, which included a $4.0 million income tax benefit, was $0.12 per share for the six months ended June 30, 2014. In comparison, net loss per share, which included a $4.2 million income tax benefit, was $0.15 per share for the six months ended June 30 2013.
In July, approximately 115,000 courses of Tecovirimat, also known as ST-246®, were accepted into the U.S. Strategic National Stockpile (the "Strategic Stockpile"). The Company received approximately $15.3 million in July from the Biomedical Advanced Research and Development Authority (BARDA) for the delivery and acceptance of these courses. In accordance with accounting principles generally accepted in the United States of America, substantially all of the cash received from BARDA and all the related cost of goods sold have been classified as deferred revenue and deferred costs, respectively, in SIGA's financial statements.
Cumulatively, as of the end of July, the Company has delivered 1.3 million courses of Tecovirimat since the beginning of 2013.
Key Financial Results for Second Quarter and First Half 2014
For the quarters ended June 30, 2014 and 2013, revenues from research and development contracts and grants were $651,000 and $965,000, respectively. The decrease in revenue of $314,000, or 33%, primarily reflects a decrease in grant revenues related to Lassa fever and dengue fever.
Revenues from research and development contracts and grants for the six months ended June 30, 2014 and 2013, were $1.2 million and $2.3 million, respectively. The decrease in revenue of $1.1 million, or 48%, is due to a $829,000 decrease in grant revenues related to Lassa fever and dengue fever and a $249,000 decrease in revenues from our federal contracts supporting the development of Tecovirimat.
Research and Development ("R&D") Expenses
R&D expenses were $2.4 million for the three months ended June 30, 2014 - a decrease of approximately $759,000, or 24%, from the $3.1 million incurred during the three months ended June 30, 2013. The overall decrease is mostly attributable to a decrease of $802,000 in employee compensation and a $322,000 gain recognized on the sale of lab equipment, both arising from the previously announced Optimization Plan, partially offset by a net inventory write-off of $327,000.
R&D expenses were $5.2 million for the six months ended June 30, 2014 - a decrease of approximately $1.6 million, or 23%, from the $6.8 million incurred during the six months ended June 30, 2013. The decrease is mostly attributable to a decrease of $1.6 million in employee compensation and a $322,000 gain recognized on the sale of lab equipment, both arising from the Optimization Plan, partially offset by a net inventory write-off of $627,000.
Selling, General and Administrative (SG&A) Expenses
SG&A expenses for the three months ended June 2014 and 2013 were $2.8 million and $3.2 million, respectively, reflecting a decrease of approximately $367,000, or 12%. The decrease in SG&A primarily relates to a decrease of $286,000 in professional fees.
SG&A for the six months ended June 30, 2014 and 2013 were $5.9 million and $6.2 million, respectively, reflecting a decrease of approximately $310,000, or 5%. The decrease in SG&A primarily relates to decreases of $254,000 in professional fees and $233,000 in office expenses, partially offset by an increase of $105,000 in franchise taxes.
Patent Preparation Expense
Patent preparation expenses for the three and six months ended June 30, 2014 were $226,000 and $512,000, respectively. These expenses reflect our ongoing efforts to protect our lead drug candidates in various geographic territories efficiently.
Financial Condition and Liquidity
Cash, cash equivalents, and short-term investments on June 30, 2014 were $99.0 million, compared with $91.3 million on December 31, 2013.
Subsequent to June 30, 2014, approximately 115,000 courses of Tecovirimat were accepted into the Strategic Stockpile. The Company received $15.3 million in July for the delivery and acceptance of these courses.
Quarterly Report on Form 10-Q
SIGA is filing today with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarterly period ended June 30, 2014. SIGA urges its investors to read this quarterly filing as well as its Annual Report on Form 10-K for the year ended December 31, 2013, also filed with the SEC, for further details concerning the Company. The First Quarter Report on Form 10-Q, and the Annual Report on Form 10-K are also available on the Company's website, at www.siga.com.
About SIGA Technologies, Inc.
We are a company specializing in the development and commercialization of solutions for serious unmet medical needs and biothreats. Our lead product is Tecovirimat, also known as ST-246®, an orally administered antiviral drug that targets orthopoxviruses. While Tecovirimat is not yet licensed as safe or effective by the U.S. Food & Drug Administration, it is a novel small-molecule drug that is being delivered to the Strategic Stockpile under Project BioShield. For more information about SIGA, please visit SIGA's web site at www.siga.com.
The SIGA Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4504
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements relating to the progress of its development programs and timelines for bringing products to market, the enforceability of the BARDA Contract and the resolution of our ongoing litigation with PharmAthene, Inc. Such forward-looking statements are subject to various known and unknown risks and uncertainties and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. SIGA's actual results could differ materially from those anticipated by such forward-looking statements due to a number of factors, some of which are beyond SIGA's control, including, but not limited to, (i) the risk that potential products that appear promising to SIGA or its collaborators cannot be shown to be efficacious or safe in subsequent pre-clinical or clinical trials, (ii) the risk that SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market other potential products, (iii) the risk that SIGA may not be able to obtain anticipated funding for its development projects or other needed funding, including from anticipated governmental contracts and grants (iv) the risk that SIGA may not complete performance under the BARDA Contract on schedule or in accordance with contractual terms, (v) the risk that SIGA may not be able to secure or enforce sufficient legal rights in its products, including intellectual property protection, (vi) the risk that any challenge to SIGA's patent and other property rights, if adversely determined, could affect SIGA's business and, even if determined favorably, could be costly, (vii) the risk that regulatory requirements applicable to SIGA's products may result in the need for further or additional testing or documentation that will delay or prevent seeking or obtaining needed approvals to market these products, (viii) the risk that one or more protests could be filed and upheld in whole or in part or other governmental action taken, in either case leading to a delay of performance under the BARDA Contract or other governmental contracts, (ix) the risk that the BARDA Contract is modified or canceled at the request or requirement of the U.S. government, (x) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA's efforts to develop or market its products, (xi) the risk that changes in domestic and foreign economic and market conditions may affect SIGA's ability to advance its research or its products adversely, (xii) the effect of federal, state, or foreign regulation, including drug regulation and international trade regulation, on SIGA's businesses, (xiii) the risk that our outstanding indebtedness may make it more difficult to obtain additional financing, (xiv) the risk that the U.S. government's responses (including inaction) to the national and global economic situation may affect SIGA's business adversely, (xv) the risk that our internal controls will not be effective in detecting or preventing a misstatement in our financial statements, (xvi) the risk that some amounts received and recorded as deferred revenue ultimately may not be recognized as revenue, (xvii) the risk that the remand to the Delaware Court of Chancery could result in a burdensome award of damages or other burdensome order, which could materially and adversely affect the Company, (xviii) the risk that the remand may result in extended and expensive litigation, (xix) the risk that our litigation with PharmAthene may impede our efforts to continue to grow the Company, and (xx) the risk that we may not be able to establish our intended positions or otherwise not prevail in any further court proceedings.
More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this presentation, is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K, for the fiscal year ended December 31, 2013 as filed on March 10, 2014, and in other documents that SIGA has filed with the Commission. SIGA urges investors and security holders to read those documents free of charge at the Commission's Web site at http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. All forward-looking statements are current only as of the date on which such statements were made. We do not undertake any obligation to update publicly any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events. CONTACT: KCSA Strategic Communications Todd Fromer / Robert Fink 212-896-1215 / 1236 Tfromer@kcsa.com / Rfink@kcsa.com
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