SIGA Technologies, Inc. Message Board

On January 10th 2013 the Delaware Supreme Court listened to oral arguments regarding SIGA's appeal of the material judgment awarded Pharmathene on September 22, 2011. Delaware's Supreme Court usually decides almost all of the cases before them within 90 days but still hasn't released their final ruling concerning SIGA's appeal of this case. After researching this case in detail, I believe as does Jeff Leff, a SIGA investor, that if there is any award to Pharmathene after this appeal, it will be significantly less than the original award. Here is an excerpt of comments made by Leff on Andrew Tobias's website-

"Jim Leff: "A friend who's also a SIGA investor tells me that an investment analysis firm hired a distinguished Delaware judge to look over SIGA's supreme court appeal and to share his findings for their big-wig investors. The judge agrees that the lower court decision (which "split the baby," awarding the plaintiff half the future revenue from SIGA's smallpox drug) was overreaching. He's confident that SIGA will be on the hook for a much, much, much lower amount (that's been my expectation, as well).""

So that you understand the impact of that lawsuit and judgment, during the first part of 2011 SIGA's stock was trading in the $10 to $15 plus range in anticipation of future revenues including a major contract with the US government for their ST-246 drug, now being branded as Arestvyr™. From the below stock chart you can see that 2011 law suit and judgment had a dramatic effect on SIGA's stock price so that anyone should be able to understand that any adjustment of that original judgment will probably dramatically increase the value of SIGA's stock.

So that you have a better understanding of the history of this lawsuit on January 3rd 2011 Pharmathene (PIP) commenced a breach of contract action against SIGA Technologies (SIGA) (referred to as SIGA herein) per this Jan. 24, 2011 PR Newswire including the following excerpt-....

The following is an odd article that hit my alerts tonight from a newspaper in Qatar:

"Smallpox kills 50 sheep at private farm
Sunday, 24 March 2013

DOHA: An outbreak of smallpox at a sheep farm in Al Khor has killed more than 50 animals, sparking fears among other animal farm owners, a senior official said.
The veterinary centre at Al Khor received several animals with smallpox from a private farm, Director of Animals Department at the Ministry of Environment, Dr Qasim Al Qahtani, told Al Sharq.
He added that if the spread of the disease was not contained, the death toll may shoot up.
According to Qahtani, a month-and-half ago, several of the 700 sheep at the farm tested positive for smallpox.
On instructions of the veterinary centre, the infected animals have been separated from the health ones. Those suffering from the infection are under treatment and are showing progress.
The sheep which died of smallpox were also suffering from other diseases like pneumonia, Qahtani said.
No other veterinary centre in the country has received any case of smallpox, added Qahtani.
Discounting fears of a spread of the disease, the official said that smallpox breaks out almost every year in Qatar and there was no need to worry as this is the first instance of so many animals dying. The department launched a programme to immunise all animals in the country from eight infectious diseases that are known to break out every year.
The animals are administered the vaccines once or twice every year.
The centres do not spare any effort to protect animals in the country, Qahtani said.
THE PENINSULA"

It won't hurt for any interested Siga long to shoot Todd an email. It's not to say that the company will start paying attention to shareholders now, but the effort can only help to defend against PIP's Sunday PR offensive.

Something like this might benefit us:

Hello Todd,

I've been a holder of Siga stock for many years, and used to correspond with Marybeth. I'd like to make a request. As I'm am sure you're already aware, Pharmathene issued a very misleading press release today: "Delaware Supreme Court Affirms Lower Court's Ruling That SIGA Technologies Breached Its Contractual Obligation To Negotiate In Good Faith."

Adding gasoline to fire, other news outlets like WSJ + Bloomberg are picking up this piece WITHOUT COMMENT.

As both you and Pharmathene are well aware, the Supreme Court affirmed in part, reversed in part. It reversed the decision by Parsons that Promissory Estoppel applied in this case. It was sent down to the lower court again so damages could be assessed as "Contract Expectation Damages" only. This is NOT a victory for PIP, and it might well be a very good decision for SIGA.

I am sure I speak for other shareholders who would like to see Siga issue a counter press release. The fact of the matter is the company should be proud to say they are happy with some aspects of the supreme court's decision. Siga has an obligation to protect its shareholder's value by responding to Pharmathene's misleading statements today.

Your's truly

On March 21, 2013, Jeffrey B. Kindler, age 57, was elected as a director of SIGA Technologies, Inc. (the “Company”) to fill an existing vacancy on the Company’s Board of Directors.

Mr. Kindler is a Venture Partner at Lux Capital, a leading venture capital firm; a principal and senior advisor to Paragon Pharmaceuticals, a global investment firm that builds and manages innovative pharmaceutical companies; and a director at Starboard Capital Partners, a Connecticut-based private equity firm. He also serves on the boards of Chipotle Mexican Grill; AgaMatrix, a developer and manufacturer of diabetes products; Intrexon, a synthetic biology company; Sheridan Healthcare, a provider of healthcare solutions to physicians, hospitals, and outpatient centers; PPD, a global contract drug discovery and development research organization; Tufts University; the National Center on Addiction and Substance Abuse at Columbia University; and the Manhattan Theatre Club. Mr. Kindler was formerly the Chairman and Chief Executive Officer of Pfizer which he joined in January 2002 and from which he retired in December 2010. He joined Pfizer as Executive Vice President and General Counsel and, prior to his appointment as CEO in July 2006, he served as a Vice Chairman of the Company. In 1996, Mr. Kindler joined McDonald's Corporation as Executive Vice President and General Counsel and in 1990 Mr. Kindler joined the General Electric Company as Vice President of Litigation and Legal Policy. Mr. Kindler not only has significant experience with public companies, he also has extensive experience in the pharmaceutical industry.

Upon his appointment to the Board of Directors, Mr. Kindler was granted stock options to acquire 25,000 shares of common stock, par value $.0001 per share, of the Company at an exercise price of $3.89, which options vested immediately on the date of the grant.

from British publication metro:
"Smallpox originates from thousands of years ago and was officially eradicated at the end of the 1970s, but the infectious disease has only recently been downgraded as a potential terror threat.
It emerged last month that the British government quietly decided that the possibility of terrorists using the virus in a biological attack was too far-fetched.
It led to criticism from the science community that former prime minister Tony Blair had wasted millions of pounds in preparing for a threat which seemed unlikely to materialise.
He spent £79m on smallpox vaccines in 2002, a controversial move given that
It was a purchase which was heavily criticised, not least for the fact that £32m of that money went to a company owned by Labour donor Paul Drayson.
By 2005, the Department of Health had vaccinated 516 volunteers – including 147 doctors, 164 nurses and 100 ambulance staff – who would, in theory, have been able to deal with any suspected or confirmed case of smallpox.
However, reports published in 2006 and 2011 suggest that the vaccination programme had floundered and that many of those vaccinated had not been revaccinated, which was necessary to maintain their immunity.
In papers leaked last month which revealed the terror threat downgrade, ministers said that preparations were too expensive, ‘unwieldy’ and not ‘proportionate’.
Experts have cited this downgrading as further proof that the vaccines should never have been purchased in the first place. However, other countries aren’t so convinced.
The US government has just placed orders for a new smallpox vaccine which could treat approximately two million of the country’s residents in the event of an attack.
Smallpox is believed to date back as far as 10,000 BC and evidence of it was found on the mummified body of Ramses V...."

The decision is imminent!
Sorry, had to say it ;)

4-7's seeing some volume today....so far 585 in total. Unless the court get's the flu like the suit store did in my cousin vinny, we should see a decision before the June options expire ;) I put some on the June 5's.