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SIGA - SIGA Technologies Inc News Story

$7.14 -0.0  -0.3%

Last Trade - 21/01/21

Sector
Healthcare
Size
Mid Cap
Market Cap £405.9m
Enterprise Value £348.3m
Revenue £67.0m
Position in Universe 3282nd / 6622

SIGA Reports Financial Results for Three and Nine Months Ended September 30, 2020

Thu 5th November, 2020 9:05pm
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- Third Quarter includes Delivery of Approximately 134,000 Courses of TPOXX®
to U.S. Government –

- In October, the Public Health Agency of Canada Announced its Intent to
Purchase up to 33,300 Courses of Oral TPOXX® –

- Corporate Update Conference Call Today at 4:30 PM ET -

NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (SIGA)
(NASDAQ: SIGA), a commercial-stage pharmaceutical company focused on the
health security market, today reported financial results for the three and
nine months ended September 30, 2020.

“SIGA’s third quarter was highlighted by the delivery of approximately
134,000 courses of oral TPOXX® to the strategic national stockpile (SNS),”
said Phil Gomez, CEO of SIGA. “With deliveries made in the second quarter,
SIGA has delivered approximately 251,000 courses of oral TPOXX® to the SNS
over the last two quarters, generating revenue from these deliveries of
approximately $78 million.  This activity in the U.S. is being complemented
by a growing international business, with the most recent activity being the
announcement by the Public Health Agency of Canada of its intent to purchase
up to 33,300 courses of oral TPOXX® over a five-year time period.”

Summary Financial Results
 ($ in millions, except per share amounts) 

Three Months Ended September 30, 2020 in comparison to Three Months Ended
September 30, 2019

                                                                                                                              Three Months                     Three Months                     
                                                                                                                              Ended                            Ended                            
                                                                                                                              September 30,                    September 30,                    
                                                                                                                              2020                             2019                             
 Total Revenues Operating Income (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share  $44.3 $32.9 $31.6 $24.2 $0.31    $8.1 $0.7 ($1.6) ($1.2) ($0.03)  

Nine Months Ended September 30, 2020 in comparison to Nine Months Ended
September 30, 2019

                                                                                                                              Nine Months                      Nine Months                       
                                                                                                                              Ended                            Ended                             
                                                                                                                              September 30,                    September 30,                     
                                                                                                                              2020                             2019                              
 Total Revenues Operating Income (1) Income (Loss) before Income Taxes (1) Net Income (Loss) Diluted Income (Loss) per Share  $87.2 $57.7 $47.3 $36.2 $0.45    $22.5 $1.1 ($3.7) ($2.7) ($0.09)  

(1) Operating Income excludes, and Income (Loss) before Income Taxes includes,
costs in connection with the retirement of the Company’s term loan, interest
expense, interest income and adjustments to the fair value of the Company’s
outstanding warrant. Both line items exclude the impact of income taxes. 

Recent Key Activities:
* In the third quarter of 2020, the Company delivered approximately 134,000
courses of oral TPOXX® to the SNS.  SIGA has recognized $41.4 million of
revenue in connection with this delivery, of which $4.1 million relates to
amounts previously received in connection with raw material procurement and
which were recorded as deferred revenue.
 

* In October 2020, the Company delivered approximately 112,000 courses of oral
TPOXX® to the SNS.  This delivery will be reflected in the financial results
for the fourth quarter 2020.
 

* In October 2020, the Public Health Agency of Canada (PHAC) issued an
advanced contract award notice (ACAN), indicating that the PHAC intends to
purchase up to 33,300 courses of oral TPOXX® within five years as specified
in the ACAN, with 3,700 courses to be delivered by March 31, 2021; a
cumulative total of 18,500 courses to be delivered by March 31, 2023; and an
additional 14,800 courses to be delivered after March 31, 2023, subject to
option exercise. This ACAN follows, but is separate and incremental to, the
issuance in April 2020 of a contract by the Canadian Department of National
Defence (CDND) for the delivery of up to 15,325 courses of oral TPOXX®.
Share Repurchase Activity

During the third quarter of 2020, SIGA repurchased approximately 0.9 million
shares of its common stock, for approximately $5.6 million.  As of September
30, the Company has cumulatively repurchased this year approximately 3.7
million shares of its common stock for approximately $21.8 million. 

Product Delivery Update in Connection with the 19C BARDA Contract

Pursuant to options already exercised under the 19C BARDA Contract, SIGA
delivered approximately 251,000 courses of oral TPOXX® to the SNS over the
first nine months of 2020.  In October, an additional approximate 112,000
courses of oral TPOXX® were delivered to the SNS.  As such, total deliveries
of oral TPOXX® under the 19C BARDA Contract are expected to total
approximately 363,000 courses for the calendar year 2020, resulting in annual
revenues of approximately $113 million.  The 19C BARDA Contract has up to an
additional $414 million of procurement-related options remaining for potential
future exercise by BARDA.  Amounts noted in this paragraph do not include any
actual or potential product deliveries in connection with international
contracts.

COVID-19 Pandemic

The COVID-19 pandemic has caused significant societal and economic
disruption.  Such disruption, and the associated risks and costs, are
expected to continue for an indeterminate period of time.  Given the
uncertain future course of the COVID-19 pandemic, and the uncertain scale and
scope of its future impact, the Company is continually reviewing business and
financial risks related to the pandemic and is continually seeking
coordination with its government partners with respect to the performance of
current and future government contracts.  Additionally, the Company is
continually coordinating with service providers and vendors, in particular
contract manufacturing organizations that constitute our supply chain, to
review actions and risks caused by the COVID-19 pandemic.

The COVID-19 pandemic has not adversely affected the liquidity position of the
Company, nor is it currently expected to have a material adverse effect on the
financial condition or annual financial results of the Company, although the
Company cannot provide assurances as to the ultimate impact of the pandemic
upon the macro environment or the Company’s industry.

Conference Call and Webcast

SIGA will host a conference call and webcast to provide a business update
today, Thursday, November 5, 2020, at 4:30 P.M. ET.

Participants may access the call by dialing 877-407-6184 for domestic callers
or 201-389-0877 for international callers. A live webcast of the call will
also be available on the Company's website at www.siga.com under the 'Events &
Presentations' tab in the Investor Relations section, or by clicking here
(https://www.globenewswire.com/Tracker?data=cuA2S_TzyI2x4GGBbXDMJvi6Vun9yejLYK4K1U-tGrvvVh9tLCaumLGiIYXZeMRCOFQFajh18BRTBVu8LEkhNLxFi0Ty-A34OEWSOqegJ-q0oEhqNA_47eGER_R30wME8x1LfKQeMUry5-Eyl18koeLxsXtVPmO7oA1whL-CICQ=).
Please log in approximately 5-10 minutes prior to the scheduled start time.

A replay of the call will be available for two weeks by dialing 877-660-6853
for domestic callers or 201-612-7415 for international callers and using
Conference ID: 13711770. The archived webcast will be available in the Events
and Presentations section of the Company's website
(https://www.globenewswire.com/Tracker?data=TEFW8jgiQLIS6kVuiEVkHeYPEd7_mSwhCM_8J16ifWpYD9IaUPIvugzzX75DtN-61wxRXKCVuXjup_B82g8mcCKRODupUWY0D0f7Chk-cM10nvVPzh8ezAeTeTV0a9A0).

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 stockpile of 1.7 million
courses in the Strategic National Stockpile under Project BioShield. The oral
formulation of TPOXX(®) was approved by the FDA for the treatment of smallpox
in 2018. The full label is here:
https://dailymed.nlm.nih.gov/dailymed/drugInfo.cfm?setid=fce826ab-4d6a-4139-a2ee-a304a913a253. 
In September 2018, SIGA signed a contract potentially worth more than $600
million with BARDA 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 Smallpox(1)

Smallpox is a contagious, disfiguring and often deadly disease that has
affected humans for thousands of years. Naturally occurring smallpox was
eradicated worldwide by 1980, the result of an unprecedented global
immunization campaign. Samples of smallpox virus have been kept for research
purposes. This has led to concerns that smallpox could someday be used as a
biological warfare agent. A vaccine can prevent smallpox, but the risk of the
current vaccine's side effects is too high to justify routine vaccination for
people at low risk of exposure to the smallpox virus.

FORWARD-LOOKING STATEMENTS

This press release contains certain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995, as amended.
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. More detailed information about SIGA and risk factors that may
affect the realization of forward-looking statements, including the
forward-looking statements in this press release, is set forth
in SIGA's filings with the Securities and Exchange Commission,
including SIGA's Annual Report on Form 10-K for the year ended December 31,
2019, and in other documents that SIGA has filed with the SEC. SIGA urges
investors and security holders to read those documents free of charge at
the SEC's web site at http://www.sec.gov. Interested parties may also
obtain those documents free of charge from SIGA. Forward-looking statements
are current only as of the date on which such statements were made, and except
for our ongoing obligations under the United States of America federal
securities laws, we undertake no obligation to update publicly any
forward-looking statements whether as a result of new information, future
events, or otherwise.

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:

Investors
David Carey 
212-867-1768
david.carey@finnpartners.com

Media
Stephanie Seiler
206-713-0124
stephanie.seiler@finnpartners.com

(1)
http://www.mayoclinic.org/diseases-conditions/smallpox/basics/definition/con-20022769

 

SIGA TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

                                                                                                                                                                                September 30, 2020             December 31, 2019           
 ASSETS                                                                                                                                                                                                                                    
 Current assets                                                                                                                                                                                                                            
 Cash and cash equivalents                                                                                                                                                      $           78,663,526         $          65,249,072       
 Restricted cash and cash equivalents, short-term                                                                                                                                           -                             95,737,862       
 Accounts receivable                                                                                                                                                                        40,398,708                    4,167,996        
 Inventory                                                                                                                                                                                  10,747,532                    9,652,855        
 Prepaid expenses and other current assets                                                                                                                                                  1,290,388                     5,234,000        
 Total current assets                                                                                                                                                                       131,100,154                   180,041,785      
                                                                                                                                                                                                                                           
 Property, plant and equipment, net                                                                                                                                                         2,236,668                     2,618,303        
 Deferred tax assets, net                                                                                                                                                                   6,484,111                     14,151,002       
 Goodwill                                                                                                                                                                                   898,334                       898,334          
 Other assets                                                                                                                                                                               702,885                       856,766          
 Total assets                                                                                                                                                                   $           141,422,152        $          198,566,190      
 LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                                                                                                                      
 Current liabilities                                                                                                                                                                                                                       
 Accounts payable                                                                                                                                                               $           1,118,307          $          3,054,032        
 Accrued expenses and other current liabilities                                                                                                                                             15,182,437                    8,636,911        
 Total debt, current                                                                                                                                                                        -                             80,044,866       
 Total current liabilities                                                                                                                                                                  16,300,744                    91,735,809       
 Warrant liability                                                                                                                                                                          9,026,690                     6,116,882        
 Other liabilities                                                                                                                                                                          3,134,304                     2,929,743        
 Total liabilities                                                                                                                                                                          28,461,738                    100,782,434      
 Commitments and contingencies                                                                                                                                                                                                             
 Stockholders’ equity                                                                                                                                                                                                                      
 Common stock ($.0001 par value, 600,000,000 shares authorized, 77,770,284 and 81,269,868, issued and outstanding at September 30, 2020 and December 31, 2019, respectively)                7,777                         8,127            
 Additional paid-in capital                                                                                                                                                                 221,587,384                   220,808,037      
 Accumulated deficit                                                                                                                                                                        (108,634,747  )               (123,032,408  )  
 Total stockholders’ equity                                                                                                                                                                 112,960,414                   97,783,756       
 Total liabilities and stockholders’ equity                                                                                                                                     $           141,422,152        $          198,566,190      



SIGA TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME
(LOSS) (UNAUDITED)

                                                               Three Months Ended September 30,                             Nine Months Ended September 30,                              
                                                               2020                                2019                     2020                                 2019                    
 Revenues                                                                                                                                                                                
 Product sales and supportive services                         $       41,810,192                  $       3,915,335        $       80,547,651                   $       11,057,735      
 Research and development                                              2,451,215                           4,195,989                6,682,298                            11,420,284      
 Total revenues                                                        44,261,407                          8,111,324                87,229,949                           22,478,019      
                                                                                                                                                                                         
 Operating expenses                                                                                                                                                                      
 Cost of sales and supportive services                                 5,559,215                           737,274                  10,465,078                           1,652,641       
 Selling, general and administrative                                   3,566,258                           3,196,370                10,613,267                           9,755,165       
 Research and development                                              2,073,613                           3,343,521                7,933,404                            9,379,125       
 Patent expenses                                                       164,102                             173,580                  520,902                              543,806         
 Total operating expenses                                              11,363,188                          7,450,745                29,532,651                           21,330,737      
 Operating income                                                      32,898,219                          660,579                  57,697,298                           1,147,282       
 (Loss) gain from change in fair value of warrant liability            (1,274,156  )                       981,923                  (2,909,808   )                       4,774,711       
 Loss on extinguishment of Term Loan                                   -                                   -                        (4,981,461   )                       -               
 Interest expense                                                      -                                   (3,971,952  )            (3,016,817   )                       (11,871,401  )  
 Other income, net                                                     24,932                              759,881                  469,226                              2,233,588       
 Income (loss) before income taxes                                     31,648,995                          (1,569,569  )            47,258,438                           (3,715,820   )  
 (Provision) benefit for income taxes                                  (7,461,038  )                       363,742                  (11,077,854  )                       977,278         
 Net and comprehensive income (loss)                           $       24,187,957                  $       (1,205,827  )    $       36,180,584                   $       (2,738,542   )  
 Basic income (loss) per share                                 $       0.31                        $       (0.01       )    $       0.45                         $       (0.03        )  
 Diluted income (loss) per share                               $       0.31                        $       (0.03       )    $       0.45                         $       (0.09        )  
 Weighted average shares outstanding: basic                            78,080,461                          81,064,927               79,880,493                           80,988,813      
 Weighted average shares outstanding: diluted                          78,168,070                          82,181,858               80,051,778                           82,148,333      

(https://www.globenewswire.com/NewsRoom/AttachmentNg/f6bb4557-ff79-4aa8-88ef-c41de9ffd198)



GlobeNewswire, Inc. 2020
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