SIGA Declares Special Cash Dividend of $0.60 Per Share
- SIGA Technologies announces a significant increase in special cash dividend compared to the prior year.
- The dividend of $0.60 per share reflects the company's focus on enhancing shareholder value.
- The dividend payment demonstrates SIGA's confidence in its business and financial position.
- The dividend is payable on April 11, 2024, to shareholders of record as of March 26, 2024.
- None.
Insights
The announcement by SIGA Technologies of a special cash dividend increase is a tangible return to shareholders and is typically a strong signal of a company's financial health and liquidity. The 33% increase in the dividend payout demonstrates management's confidence in the firm's operating performance and cash position. For investors, this move can be interpreted as a positive indicator that the company is generating sufficient cash flow to reward shareholders without compromising its capital structure or future investment capacity.
From a financial analysis perspective, such a decision often prompts a re-evaluation of the company's stock valuation. Dividend increases can lead to a re-rating of the stock as the market factors in the higher yield and the potential for future increases. However, it is crucial to analyze this in the context of the company's payout ratio and long-term earnings potential to assess sustainability.
Within the pharmaceutical sector, capital allocation strategies such as dividends can differentiate a company from its peers. SIGA Technologies' decision to increase its special dividend could attract income-focused investors, particularly in a market where stable dividend payers are highly valued. This strategic move may also reflect an industry trend where companies with strong balance sheets and lower reinvestment needs return excess capital to shareholders.
Furthermore, this announcement could influence investor perception of the company's growth prospects. A significant dividend increase might suggest that SIGA is entering a mature phase with fewer high-yielding investment opportunities, thus opting to return cash to shareholders rather than reinvesting it at a lower rate of return.
The declaration of a higher special dividend by SIGA Technologies may have broader economic implications. It suggests that at least some segments of the pharmaceutical industry are experiencing solid cash generation, possibly reflecting a favorable economic environment for the sector. Moreover, this action could be indicative of a broader macroeconomic trend where companies are increasingly returning capital to shareholders in a period of economic stability or growth.
However, it's important to consider the broader economic context, including interest rate trends and inflationary pressures, which can impact the attractiveness of dividend stocks. In a low-interest-rate environment, for example, high-dividend stocks can become more appealing as they offer competitive yields relative to fixed-income securities.
Represents a
NEW YORK, March 12, 2024 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (SIGA) (NASDAQ: SIGA), a commercial-stage pharmaceutical company, today announced that its board of directors declared a special cash dividend of
“Our operating performance, strong cash resources, and continued confidence in SIGA’s business position us to declare a special cash dividend for our shareholders,” said Diem Nguyen, Chief Executive Officer. “The significant increase in the dividend compared with the prior-year dividend reflects our active focus on deploying a full range of tools to generate shareholder value, including capital management and disciplined investments. The dividend also highlights our optimism about the company’s business prospects.”
ABOUT SIGA TECHNOLOGIES, INC. and TPOXX®
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. TPOXX is a novel small-molecule drug and the US 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, monkeypox, 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 including securing new contracts and partnerships. The words or phrases “can be,” “expects,” “may affect,” “may depend,” “believes,” “estimate,” “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, 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, U.S. Department of Defense contracts are modified or canceled at the request or requirement of 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, such as COVID-19, are ineffective and may adversely affect SIGA’s business, and (xvii) risks associated with responding to the current 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.
Contacts:
Investor Contact
Laine Yonker, Edison Group
lyonker@edisongroup.com
Media Contact
Holly Stevens, Berry & Company
hstevens@berrypr.com
FAQ
What is the amount of the special cash dividend declared by SIGA Technologies, Inc.?
How much is the increase in the special cash dividend compared to the previous year's dividend?
When will the special cash dividend be payable to shareholders?
Who is the Chief Executive Officer of SIGA Technologies, Inc.?
