SIGA should Acquire PIP just before PIP Files Chap 11.
As we all know, SIGA and PIP are involved in litigation about a proposed merger in 2006 that was ultimately rejected by SIGA after PIP had substantially changed the merger terms for the benefit of PIP. At that time, I owned PIP shares and could not believe the hutzpah of PIP and the incredible terms of the final merger proposal, which came about mainly because SIGA had been in a dire financial state..
Now that I own SIGA shares, I do not understand how a court would accept such unconscionable terms of merger. it was undoubtedly a take-it-or-leave-it contract that SIGA subsequently rejected outright. Still, a DE court sided with PIP giving it 50% of net profits from the sale of ST-246 for 10 years. SIGA then appealed and the Delaware Supreme Court heard oral arguments jn Jan, 2013 with a decision expected in Q2, 2013 (THIS Q).
Meanwhile, PIP is almost bankrupt with only about $12 million in cash. And in the unlikely event that PIP wins in the DE Supreme Court, SIGA should appeal to the US Supreme Court. Then, when PIP, which has a current market cap of $78 million, runs out of cash, SIGA should move to acqure PIP -- probably for less than $40 million in a stock deal -- and consequently take over PIP's anti-anthrax and anti-nerve-gas treatments.
The decision by the Del Supreme Court can not be appealed to the US Supreme Court. Only when there is a federal question, which is to say, a specific issue (such as consistency with the Federal Constitution) that gives rise to federal jurisdiction can a state Supreme Court decision be appealed to the US Supreme Court. No questions of that type exists in this case.
WoW for someone whome asserts that they owned this in 2006 you got a blured/biased Oppinion of what happend in 2006 and what happened afterward. there was no rejection(it was in the contract that if the merger was not consimated by Sept 30 either party could back out for no particular reason) around Sept 20 2006 PiP asked for an extention Siga chose not to reply (they did not need to there was no way it could have been consimated in the time left) sept30 came and went oct 3?4th? or 5th Siga sent them a letter stating that they were backing out of the merger. PiP sent Siga a letter reminding them that they had an obligation to Neg a marketing Agreement exclusively with PiP for the next 90days(which they did its just that after the positive test results Sigas asking Price For 246 went beyond PiPs credit limit, hence they got in a huff grabbed their marbles and filed this lawsuit with 5 negotiating days still on the clock)....... If I really have to tell you the rest of the story Let me Know.....
If you do tell the rest Beep please use consummated or constipated. The rest is pretty well how I saw it go down the drain as well, except for a few details....been here since 2006. PIP requested the first ext. beyond Jan.30/2006 for the on going merger negotiations the year bfr. SIGA did change what they were willing to accept in a merger after the animal study success. PIP did not respond to these changes later insisting that the terms were already completed bfr. SIGA decided to back out and hence were commited to follow through.(PIP's bad faith strategy) The bridge loan was drawn up initially to show PIP was serious about the merger as they had pulled out once bfr. but as you stated it was made obvious PIP could not raise their required initial funding of $25mil.twds the merger which never the less became inadequate from SIGA's perspective when the positive results later came in. The Supremes seemed to look at the case as straight fwd. No contract, no reliance damages and promissory estopple that was impossible to determine from that point in the drug's development. 7 years later SIGA has yet to file NDA. CMX looks like they could get half the BARDA smallpox contract if in fact the govt. still funds the entire order.