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SIGA Technologies Inc. Message Board

  • nicehedges nicehedges Mar 27, 2013 3:12 PM Flag

    SA: Stocks with Upcoming Legal Catalysts

    "...PharmAthene (PIP) is engaged in an interesting piece of litigation versus Siga Technologies (SIGA). This lawsuit centers over the terms of a merger which was discussed, but never culminated. During the course of their merger talks, SIGA was strapped for cash, and PharmAthene offered to give them a $3 million loan, but with the idea that if the merger did not go through, that part of the asset ST-246 (called Arestvyr) would belong to PharmAthene, pursuant to a license agreement agreed to by both parties. Well, the deal did not go through, and SIGA and PIP went their separate ways. This lawsuit was initiated after PIP was not given any part of the asset, and PIP sued SIGA in the state of Delaware. Now, here is where it begins to get interesting. SIGA is awarded a huge contract by the Department of Defense for their smallpox antiviral, estimated to be worth around $412.5 million. Well, the Delaware court finds in favor of PharmAthene and orders that after SIGA makes its first $40 million dollars in net profits, that the profits must be split with PharmAthene 5050 until ten years after the first commercial sale of the product. PharmAthene was also awarded some of its legal fees. As is typical, SIGA decided to appeal (I am not blaming them, in their shoes it was probably the best move they had), after the appeals court largely upheld the aforementioned judgment, SIGA appealed to the Delaware Supreme Court. PharmAthene filed a cross-appeal for aspects of the ruling that it did not agree with. For those of you non-law lovers out there, when a person/company/entity appeals to the court they are questioning the previous court's decision, and asking for the higher court to overturn the lower court. What a cross-appeal means is that since PharmAthene was not the one who asked for the appeal, they decided to appeal parts of the court's verdict which they did not like...."

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