SIGA Technologies, Inc. to Get $2.8 Billion U.S. Drug Contract; Shares Jump
Published: Oct 13, 2010
NEW YORK, Oct 13, 2010 (GlobeNewswire via COMTEX) -- SIGA Technologies, Inc. /quotes/comstock/15*!siga/quotes/nls/siga (SIGA 11.82, +3.26, +38.08%) , a company specializing in the development of pharmaceutical agents to combat bio-warfare pathogens, announced today that the U.S. Department of Health and Human Services (HHS) has announced HHS's intention to make an award to SIGA of a contract to deliver 1.7 million courses of its smallpox antiviral for the Strategic National Stockpile, pending resolution of issues relating to SIGA's status with the Small Business Administration. The award relates to a Request for Proposal issued by HHS's Biomedical Advanced Research and Development Authority (RFP-BARDA-09-35). The base contract, if finalized, is expected to generate revenues of approximately $500 million, and the entire contract, if all options are exercised, is expected to generate revenues of approximately $2.8 billion. The Small Business Administration issues noted above derive from HHS notification to SIGA that Chimerix, Inc. (Chimerix) has filed a small business size protest against SIGA after receiving pre-award notice from HHS that Chimerix was an unsuccessful bidder. HHS designated the proposed contract as a small business set-aside at the time of the original solicitation in March 2009. SIGA intends to respond promptly to the Small Business Administration concerning Chimerix's protest. Dr. Eric A. Rose, SIGA's Chairman and Chief Executive Officer, stated, "We are very proud that HHS has selected our groundbreaking drug, ST-246(R), for this important acquisition and believe that SIGA appropriately qualified as a small business concern for this procurement." Details of HHS's March 11, 2009 request for proposal and subsequent amendments can be found on the Federal Business Opportunities website at www.fbo.gov/index?s=opportunity&mode=form&id=61e7acbe316f2c52bfe0cc8c4b4852fd&tab=core&_cview=1. SIGA expects the proposed contract to be executed following resolution of the Chimerix protest; however, there can be no assurance concerning the outcome of the small business size protest. About SIGA Technologies, Inc. SIGA Technologies is applying viral and bacterial genomics and sophisticated computational modeling in the design and development of novel products for the prevention and treatment of serious infectious diseases, with an emphasis on products for biological warfare defense. SIGA believes that it is a leader in the development of pharmaceutical agents to fight potential bio-warfare pathogens. SIGA has antiviral programs targeting smallpox and other Category A pathogens, including arenaviruses (Lassa fever, Junin, Machupo, Guanarito, Sabia, and lymphocytic choriomeningitis), dengue virus, and the filoviruses (Ebola and Marburg). For more information about SIGA, please visit SIGA's web site at http://www.siga.com/. The SIGA Technologies, Inc. logo is available at www.globenewswire.com/newsroom/prs/?pkgid=4504 Forward-looking Statements This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding SIGA's ability to offer its products for sale to the U.S. government and statements regarding execution of the contract described above or the timing or outcome of the pending protest. Statements other than statements of historical fact are forward-looking statements, and may be identified by, among other things, forward-looking language such as the words or phrases "expect," "intend," "believe," "anticipate," "estimate," "may," "project," "scheduled to," "seek," "should," "would," "will be," "will continue," "will likely result," "targeted," or the negative of those terms, or other similar words and phrases or by discussions of intentions or plans. Forward-looking statements are based on management's estimates, assumptions and projections, and are subject to uncertainties, many of which are beyond the control of SIGA. Actual results may differ materially from those anticipated in any forward-looking statement. Factors that may cause such differences include (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 these or other potential products, (iii) the risk that SIGA may not be able to obtain anticipated funding for its development projects or other needed funding, (iv) the risk that SIGA may not be able to secure funding from anticipated government contracts and grants, (v) the risk that SIGA may not be able to secure or enforce sufficient legal rights in its products, including patent protection for its products, (vi) the risk that any challenge to our patent and other property rights, if adversely determined, could affect our 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 BARDA may not complete the procurement set forth in its solicitation for the acquisition of smallpox antiviral for the strategic national stockpile, or may complete it on different terms, (ix) the risk that the pending protest or another future protest may cause a contract award to us through the RFP process to be delayed or overturned, (x) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA's efforts, and (xi) the effect of federal, state, and foreign regulation on SIGA's businesses. More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this press release, 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, 2009, and in other documents that SIGA has filed with the SEC. SIGA urges investors and security holders to read those documents free of charge at the SEC's Web site at http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements speak only as of the date they are made, and except for our ongoing obligations under the United States of America federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.