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PharmAthene, Inc. Message Board

  • cash2go cash2go Jun 10, 2013 6:24 PM Flag

    Supreme Court said LATS not promissory estoppel

    Promissory estoppel does not apply, however, where a fully integrated, enforceable contract governs the promise at issue.74 The promise to negotiate in good faith for a definitive license agreement in accordance with the LATS’s terms is expressly included in both the Bridge Loan and Merger Agreements. Therefore, a claim based on promissory estoppel cannot lie and a Vice Chancellor must look to the contract as the source of a remedy on the breach of an obligation to negotiate in good faith.

    ($40M and 50/50 is far more favorable to Siga than LATS)

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    • Out of court settlement before end of quarter CC's?

    • Too speculative is one point Siga has argued:

      * By the end of 2005, both SIGA’s and PharmAthene’s conservative estimates valued ST–246 at approximately $1 billion.

      * (SIGA’s Draft LLC) (1) the upfront payment from PharmAthene to SIGA increased from $6 million to $100 million; (2) the milestone payments to SIGA increased from $10 million to $235 million; (3) the royalty percentages owed to SIGA increased from 8%, 10%, and 12% depending on the amount of sales to 18%, 22%, 25%, and 28%; and (4) SIGA would receive 50% of any remaining profit

      Looks like Siga saw plenty of value when the "bad faith" tactic came into play.

      • 1 Reply to cash2go
      • The Supreme Court review centered on the degree of "bad faith" on Siga's part. Anyone else think the SC would be happy to see Siga get slapped with full LAT terms? It does not read well for Siga, I would highly recommend they make a honest effort for an out of court settlment this time.

        PIP should avoid going for a commplete emotional win. Settle out of court for better than the $40m and 50/50 split. SC suggested a contract based on LATS and that would be FAR more favorable to PIP. Wrap up their agreement so that PIP's pipeline could get a lot more attention.

        Guess this post was more for long term investors that are also watching a pipeline threatening to become biggers news than the SIGA escapade.

        As this one continues to drip lower I continue to add. It's becoming a serious sized investment for me. Hope to see some green showing on the investement by the end of summer. Loving this downside action for cheaper shares. If you are not new to biotechs you may be shocked at how a seemingly high success possibility could get price so cheaply, it's not unusual. If a big house were to take a look and give it it's blessing - Zoom. Until then the little guy gets to watch the boyz walk it down and continue adding cheaply thanks to their worlk


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