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SIGA Technologies, AŞ Message Board

  • geallis geallis Jan 7, 2013 7:08 PM Flag

    Hidden in the GE Loan - A PIP Killer

    Reading between the lines...

    In Paragraph 3 which outlines items NOT used as collateral, section 4 states: (iv) any other orthopox related small molecule therapeutic product derived from the same family of tricyclononenes from which ST-246 was derived.

    I do not recall any such protection for PIP in the judgment which was specific to ST-246, this may indicate that SIGA is working to improve on ST-246. PIP would then not be eligable for 50% of those sales.

    Sentiment: Buy

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    • Wishful thinking.

    • I don't see how SIGA could derive a product quickly enough to change anything. The only way I can see a related compound being a PIP killer is if they have found a prodrug that is metabolized to ST-246. Even that would require repeat of safety and efficacy studies.
      I'm not familiar enough with their library to know if ST-669 is in the same family of compounds. If it is that would make more sense. It would also mean much progress has been achieved on the broad spectrum antiviral.

      If the loan is collateralized with ST-246 then a default on the loan would trigger foreclosure.
      Do you think this is a sort of poison pill? In case things go worse in court than they already are, siga could default on the loan and pip and the bank could figure out how to put the baby back together. I think that would mean PIP contracting with SIGA to complete the contract work.

      • 3 Replies to musherga
      • Two quick technical points. First, the SIGA patents covering the broad antivirals (such as ST-669) have no cyclononenes described whatsoever and comprise compounds that are chemically unrelated to ST-246. There have been no claims for ST-699 anti-smallpox effectiveness. Second, the early ST-246 patent screened a number of successful candidate drugs that were not cyclononenes but did have other common features. Parsons chose the category of "cyclononenes", I wouldn't have and it might leave wiggle room in potential future contracts, unlikely as that might be. In any case, an alternative to ST-246 wouldn't be ready under the current BARDA contract.

      • After listening to the Nov 5th conference call again, it is interesting to note the response when asked by Joaquin Horton of Stern Agee, whether the company would need to look for capital outside of the government to further the development of Lassa and Dengue. Rose responded by saying that over the next 2 years he expects to have money in the company's coffers and does not envision the need to pursue financing or other sources of private sector money. He also mentioned that he felt Siga could create the best value long term by using their own capital and by not partnering with anyone else.

        In the weeks following the call, the company did receive the $12.3M labeling milestone pmt., bringing total received payments to $53.3M. Lots of cash coming in, how much is going out to maintain the contract, keep other programs moving forward, and keep the lights on? Maybe Joaquin can ask them about the need for this loan.

        Sentiment: Strong Buy

      • ST-246 is *excluded* from collateral security. The lender is the same one that PIP got 7.5 million from. Probably just financing legal bills.