SIGA Announces Agreement to Sell TPOXX® to ASEAN Member States
SIGA Technologies has announced an agreement to sell its antiviral drug TPOXX (tecovirimat) to ASEAN member states. The agreement was signed by the Ministry of Health of Brunei Darussalam on behalf of ASEAN, reflecting a collective effort to prepare for public health events such as Mpox and smallpox. This collaboration with Meridian Medical Technologies aims to ensure an adequate supply of TPOXX in the region, which comprises over 600 million people with a GDP of $3.6 trillion. Financial details of the agreement were not disclosed.
- Agreement expands TPOXX access to a significant international market.
- Strengthens public health preparedness in Southeast Asia.
- Collaboration with established partner Meridian Medical Technologies.
- Potential for future expansion in a strategic, highly populated region.
- Financial terms of the agreement were not disclosed, creating uncertainty about the financial impact.
- No immediate revenue figures provided, leaving potential financial benefit unclear.
Insights
The agreement between SIGA Technologies and ASEAN member states to supply TPOXX (tecovirimat) is a significant move in the pharmaceutical and global health sectors. This deal not only strengthens SIGA's presence in a highly populated region but also aligns with the broader strategy of global health preparedness. ASEAN's collective preparedness efforts signal serious investment in countermeasures against potential public health threats. For retail investors, the implication is clear: SIGA is solidifying its position in the market through strategic partnerships.
Short-term, this deal may not immediately reflect in SIGA's earnings, as financial terms were not disclosed. However, the partnership with a substantial market like ASEAN hints at future revenue streams. Investors should watch for subsequent announcements on specific procurement volumes and timelines.
In the long-term, SIGA’s strategic entry into Southeast Asia provides a foothold for further expansion in other emergent markets. The company's focus on infectious diseases and global health aligns well with increasing governmental and institutional emphasis on pandemic preparedness, potentially opening doors to additional contracts and partnerships.
The financial implications of SIGA’s agreement with ASEAN member states are notable, despite the absence of disclosed terms. This contract represents a strategic expansion into a densely populated region with considerable economic influence. For investors, this is a positive development, as it could lead to substantial future revenues and strengthen SIGA’s market position.
Economic stability and growth in the ASEAN region indicate a reliable market for pharmaceutical products. The deal may enhance SIGA’s revenue diversification, reducing reliance on existing markets. Investors should be aware that such diversification can mitigate risks associated with market fluctuations and geopolitical uncertainties.
Additionally, this agreement signifies a potential increase in demand for TPOXX, driven by governmental focus on health preparedness. This could translate into recurring revenue streams, especially if ASEAN member states continue to prioritize public health investments. Given the size of the ASEAN economy, even modest uptake could be financially significant for SIGA.
Further Advances SIGA’s Strategy to Expand Access to TPOXX into More International Markets
NEW YORK, June 17, 2024 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc., a commercial-stage pharmaceutical company focused on global health and infectious diseases, announced today an agreement to expand access to TPOXX (tecovirimat) to the member states in the Association of Southeast Asian Nations (ASEAN), a political and economic union in the region. This agreement, which was signed by the Ministry of Health of the Government of Brunei Darussalam on behalf of ASEAN Health Sector, is significant as it reflects the use of ASEAN funds to support preparedness activities for potential public health events. The contract was coordinated by SIGA and its international promotion partner, Meridian Medical Technologies, LLC, a subsidiary of Kindeva Drug Delivery.
A spokesperson from the Ministry of Health, Brunei Darussalam said, “We are pleased to support the ASEAN-wide effort to prepare for and respond to public health events. Ensuring adequate supply and access to countermeasures is a vital part of preparedness and this initiative by the region strengthens our collective health security against the Mpox threat.”
“At SIGA, we are committed to expanding our global reach and ensuring patients around the world have access to TPOXX, our best-in-class medicine to treat some of the world’s most devastating diseases, including smallpox,” said Victor Gomes, Vice President, International Markets of SIGA. “This agreement establishes a footprint in a highly populated region and sets the groundwork for additional activity in the future. Asia is a strategic region for SIGA and a contract providing for the initial procurement of TPOXX for the ASEAN region represents an important step in growing orthopoxvirus preparedness in the region. We look forward to working closely with our new partners at ASEAN.”
ASEAN, established in August 1967, is comprised of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Philippines, Singapore, Thailand, and Viet Nam. Together, its member states represent a population of over 600 million with a GDP of
The financial terms of the agreement were not disclosed.
ABOUT SIGA TECHNOLOGIES, INC.
SIGA Technologies, Inc. is a commercial-stage pharmaceutical company focused on the health security market. Health security comprises countermeasures for biological, chemical, radiological and nuclear attacks (biodefense market), vaccines and therapies for emerging infectious diseases, and health preparedness. Our lead product is TPOXX®, also known as tecovirimat and ST-246, an orally administered and IV formulation antiviral drug for the treatment of human smallpox disease caused by variola virus.
ABOUT TPOXX®
TPOXX is a novel small-molecule drug and the U.S. maintains a supply of TPOXX under Project BioShield. The oral formulation of TPOXX was approved by the FDA for the treatment of smallpox in 2018, and the IV formulation was approved for the same indication in 2022. The full label is available by clicking here. Oral tecovirimat received approval from the European Medicines Agency (EMA) and the Medicines and Healthcare Products Regulatory Agency (MHRA) in the United Kingdom in 2022. The EMA and UK approvals include labeling for oral tecovirimat indicating its use for the treatment of smallpox, Mpox, cowpox, and vaccinia complications following vaccination against smallpox. The full label is available by clicking here. In September 2018, SIGA signed a contract with the Biomedical Advanced Research and Development Authority (BARDA), part of the office of the Administration for Strategic Preparedness and Response within the U.S. Department of Health and Human Services, for additional procurement and development related to both oral and intravenous formulations of TPOXX. For more information about SIGA, please visit www.siga.com.
ABOUT ORTHOPOXVIRUSES
Orthopoxvirus, belonging to the family of poxvirus that infect humans, include smallpox, mpox, cowpox and vaccinia. Smallpox, a highly contagious and fatal disease, presents itself as a risk to global health security today given fears of its release accidentally or intentionally as a bioweapon. Mpox virus, similar to smallpox, causes intermittent human infections, painful lesions, and possible case fatalities. Mpox outbreaks have been observed recently in the US, Europe, and Central & West Africa. Whether through natural occurrence or potential bioweapon warfare, orthopox threatens global health. Anti-virals and vaccines serve as possible solutions to address these threats.
FORWARD-LOOKING STATEMENTS
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements relating to SIGA’s future business development and plans, including future procurement of TPOXX in the ASEAN region. The words or phrases “can be,” “expects,” “may affect,” “may depend,” “believes,” “estimate,” “will”, “project” and similar words and phrases are intended to identify such forward-looking statements. Such forward-looking statements are subject to various known and unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. SIGA’s actual results could differ materially from those anticipated by such forward-looking statements due to a number of factors, some of which are beyond SIGA’s control, including, but not limited to, (i) the risk that BARDA elects, in its sole discretion as permitted under the 19C BARDA Contract (the “BARDA Contract”), not to exercise all, or any, of the remaining unexercised options under those contracts, (ii) the risk that SIGA may not complete performance under the BARDA Contract on schedule or in accordance with contractual terms, (iii) the risk that the BARDA Contract or U.S. Department of Defense contracts are modified or canceled at the request or requirement of, or SIGA is not able to enter into a new contracts to supply TPOXX to, the U.S. Government, (iv) the risk that the nascent international biodefense market does not develop to a degree that allows SIGA to continue to successfully market TPOXX internationally, (v) the risk that potential products, including potential alternative uses or formulations of TPOXX that appear promising to SIGA or its collaborators, cannot be shown to be efficacious or safe in subsequent pre-clinical or clinical trials, (vi) the risk that target timing for deliveries of product to customers, and the recognition of related revenues, are delayed or adversely impacted by the actions, or inaction, of contract manufacturing organizations, or other vendors, within the supply chain, or due to coordination activities between the customer and supply chain vendors, (vii) the risk that SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market these or other potential products or uses, (viii) the risk that SIGA may not be able to secure or enforce sufficient legal rights in its products, including intellectual property protection, (ix) the risk that any challenge to SIGA’s patent and other property rights, if adversely determined, could affect SIGA’s business and, even if determined favorably, could be costly, (x) the risk that regulatory requirements applicable to SIGA’s products may result in the need for further or additional testing or documentation that will delay or prevent SIGA from seeking or obtaining needed approvals to market these products, (xi) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA’s efforts to develop or market its products, (xii) the risk that changes in domestic or foreign economic and market conditions may affect SIGA’s ability to advance its research or may affect its products adversely, (xiii) the effect of federal, state, and foreign regulation, including drug regulation and international trade regulation, on SIGA’s businesses, (xiv) the risk of disruptions to SIGA’s supply chain for the manufacture of TPOXX®, causing delays in SIGA’s research and development activities, causing delays or the re-allocation of funding in connection with SIGA’s government contracts, or diverting the attention of government staff overseeing SIGA’s government contracts, (xv) risks associated with actions or uncertainties surrounding the debt ceiling, (xvi) the risk that the U.S. or foreign governments' responses (including inaction) to national or global economic conditions or infectious diseases, are ineffective and may adversely affect SIGA’s business, and (xvii) risks associated with responding to an mpox outbreak, as well as the risks and uncertainties included in Item 1A “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2023 and SIGA's subsequent filings with the Securities and Exchange Commission. SIGA urges investors and security holders to read those documents free of charge at the SEC's website at http://www.sec.gov. All such forward-looking statements are current only as of the date on which such statements were made. SIGA does not undertake any obligation to update publicly any forward-looking statement to reflect events or circumstances after the date on which any such statement is made or to reflect the occurrence of unanticipated events.
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