Expectation damage: In the absence of a licensing right being granted to pip
as was verbally agreed upon( or understood) by the two parties, the only equitable solution to rectify the profits loss by pip is to split all profits derived from the sale of the drug equally between the two companies. It's what pip would have gotten, had siga not decided at the last minute to breach the agreement. Expectation damage is the equivalent of the opportunity loss as a result of one party acting in bad faith and its the only equitable way to correct the consequences of the actions of someone acting in bad faith. Both companies would have benefitted equally if the agreement was was upheld.
"Both companies would have benefited equally if the agreement was was upheld"
You're making some pretty big assumptions here.
How do you know that PIP would have been able to successfully carry the development process forward with BARDA? Would PIP have been able to establish the rigorous corporate and scientific security measures required by BARDA? Would pip have been able to satisfy all of the other requirements that BARDA established?
Whether PIP would have been able to perform, is completely unknowable at this point. You cannot re-write history to your liking. If anything, there is more evidence that PIP would have complicated matters as evidenced by their background of lying to the FDA.