SIGA Announces U.S. Government Procurement Order of $113 Million for Oral TPOXX®

Rhea-AI Summary

SIGA Technologies (NASDAQ: SIGA) has announced a significant $113 million procurement order from the U.S. Department of Health and Human Services for oral TPOXX® treatment courses. This order, exercised under a current contract, aims to enhance orthopoxvirus preparedness. CEO Diem Nguyen highlighted that this order builds upon previous orders from the U.S. government and 15 international customers in 2023, supporting consistent action for public health protection against natural, accidental, or intentional threats. The project is supported by federal funds from various U.S. health agencies, including BARDA and the Strategic National Stockpile.

Positive

• Secured a $113 million procurement order from the U.S. government
• Builds on previous orders from U.S. and international customers
• Enhances company's role in global health security
• Generates attractive returns for the company and shareholders

Negative

• None.

Financial Analyst

The procurement order for $113 million from the U.S. government represents a significant revenue boost for SIGA Technologies. This is especially notable as the company is in the pharmaceutical sector, where government contracts can often translate into stable, predictable income streams. This contract, secured under the Administration for Strategic Preparedness and Response and Biomedical Advanced Research and Development Authority (BARDA), will undoubtedly enhance SIGA's revenue figures in the short term, which could lead to a positive impact on its stock price.

For retail investors, it's worth noting that such government contracts often come with a degree of reliability and continuity, reducing financial risk compared to other revenue sources. However, dependency on government contracts can also be a double-edged sword, as any changes in government priorities or budget allocations might affect future contracts.

In the longer term, this procurement could fortify SIGA's position as a trusted supplier for the U.S. government, potentially opening doors for additional contracts and international opportunities. Investors should look at how this fits into the company's overall revenue mix and growth strategy.

Market Research Analyst

From a market perspective, the exercise of this procurement option highlights a growing emphasis on orthopoxvirus preparedness. SIGA’s oral TPOXX® is positioned within a niche but critical market segment. The contract underscores the importance of their product in national security contexts, which can often shield it from market fluctuations that affect other pharmaceutical products.

This contract also signals to the market that TPOXX® has met stringent government standards, enhancing its credibility and potentially facilitating market penetration in other regions or sectors, such as international government contracts or private sectors concerned with biosecurity.

For retail investors, the news is a positive indicator of SIGA's strategic alignment with government needs, potentially leading to brand recognition and market trust. On the flip side, it’s essential to monitor the company's ability to diversify its product portfolio to mitigate risks associated with a single product focus.

Exercise of Procurement Option under Current Contract Reflects Continuing Action to Enhance Orthopoxvirus Preparedness

NEW YORK, July 19, 2024 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (SIGA) (NASDAQ: SIGA), a commercial-stage pharmaceutical company, today announced that the U.S. Department of Health and Human Services exercised a procurement option for the delivery of approximately $113 million of oral TPOXX^® treatment courses.

“Building on the orders received in 2023 from the U.S. government and 15 international customers, this $113 million order from the U.S. government will enhance orthopoxvirus preparedness and support sizable and consistent action when needed to help ensure public health from natural, accidental, or intentional threats,” said Diem Nguyen, Chief Executive Officer. “We are pleased to fulfill our responsibility to global health security while generating attractive returns for our company and shareholders.”

This project has been supported in whole or in part with federal funds from the U.S. Department of Health and Human Services; Administration for Strategic Preparedness and Response; Biomedical Advanced Research and Development Authority (BARDA) and Strategic National Stockpile, under contract number 75A50118C00019.

ABOUT SIGA
SIGA is a commercial-stage pharmaceutical company and leader in global health focused on the development of innovative medicines to treat and prevent infectious diseases. With a primary focus on orthopoxviruses, we are dedicated to protecting humanity against the world’s most severe infectious diseases, including those that occur naturally, accidentally, or intentionally. Through partnerships with governments and public health agencies, we work to build a healthier and safer world by providing essential countermeasures against these global health threats. Our flagship product, TPOXX^® (tecovirimat), is an antiviral medicine approved in the U.S. and Canada for the treatment of smallpox and authorized in Europe and the UK for the treatment of smallpox, mpox (monkeypox), cowpox, and vaccinia complications. For more information about SIGA, visit www.siga.com.

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 the timing of delivery of ordered oral TPOXX courses. 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 75A50118C00019 BARDA Contract (the “BARDA Contract”), not to exercise the remaining unexercised option under the BARDA Contract, (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.

The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official endorsement should be inferred.

Contact:

Investors and Media

Suzanne Harnett

sharnett@siga.com

FAQ

What is the value of SIGA's recent procurement order for oral TPOXX®?

SIGA Technologies (NASDAQ: SIGA) received a procurement order valued at approximately $113 million for oral TPOXX® treatment courses from the U.S. Department of Health and Human Services.

What is the purpose of the $113 million TPOXX® order for SIGA?

The $113 million order for oral TPOXX® is aimed at enhancing orthopoxvirus preparedness and supporting consistent action to ensure public health protection against natural, accidental, or intentional threats.

How does the recent TPOXX® order relate to SIGA's previous orders in 2023?

The $113 million order builds upon previous orders SIGA received in 2023 from the U.S. government and 15 international customers, further strengthening the company's role in global health security.

Which U.S. government agencies are supporting SIGA's TPOXX® procurement project?

The project is supported by federal funds from the U.S. Department of Health and Human Services, Administration for Strategic Preparedness and Response, Biomedical Advanced Research and Development Authority (BARDA), and Strategic National Stockpile.