NEW YORK, May 12, 2008 (BUSINESS WIRE) -- SIGA Technologies, Inc. (NASDAQ: SIGA), a company specializing in the development of pharmaceutical agents to fight biowarfare pathogens, today announced its results of operations for the first quarter of 2008.
Revenues for the quarter ended March 31, 2008 were $2.0 million, virtually even with last year. All revenues for the quarter were derived from grants and contracts.
For the quarter, R&D expenses were $2.8 million, compared to $2.6 million in the first quarter of 2007. The majority of the increase was a result of increased expenditures for clinical and pre-clinical testing and manufacture of our drug candidates.
Operating loss for the first quarter of 2008 was $2.0 million, an increase from $1.8 million in the previous quarter. The increase in operating loss is primarily attributable to the increase in the testing and manufacturing expenses noted above. First quarter net loss was $858,000, versus a net loss of $3.1 million in the three months ended March 31, 2007. The decrease in net loss for the quarter is primarily attributable to the recognition of a non-cash gain of $1.0 million reflecting a decline of the fair market value of certain rights and warrants to purchase common shares of the Company's stock compared to a non-cash charge of $1.5 million in the 2007 period. Loss per share, on a diluted basis, for the quarter as ($0.03) as compared to a loss of ($0.10) for the same period last year.
The Company ended the quarter with cash and cash equivalents of $5.1 million compared to $6.8 million as of December 31, 2007.
Dr. Eric Rose, SIGA's CEO, commented, "This was a good quarter for SIGA, as we continued to advance our lead product candidate, ST-246(R). We submitted our application supporting an Emergency Use Authorization for ST-246(R), a pivotal step in the government's ability to stockpile this drug under Project BioShield. We also took steps to advance regulatory review of ST-246(R) in the European Union, as our European subsidiary received Small or Medium Enterprise status. This status will reduce costs and make available valuable resources as we begin the process of obtaining Marketing Authorization for the 27 member countries of the EU, which represents a significant market opportunity for us. Finally, we initiated production of three registration batches of ST-246(R), an important milestone as we complete the work needed to file our application with the FDA for full marketing approval."
Dr. Rose continued, "In addition to the regulatory progress we made during the quarter with respect to ST-246(R), we are seeing encouraging signs from our pipeline of other antivirals as well. Our antiviral for Lassa fever, ST-193, is a pre-clinical candidate that has shown efficacy in multiple preliminary animal challenge studies. We are also seeing promise in our antivirals for Dengue Fever and Bunyavirus, along with our anti-bacterial program, all of which are in early stages of the pre-clinical process. We are extremely pleased by the direction in which SIGA is headed, and look forward to providing further updates on our continued progress in the future."
About SIGA Technologies, Inc.
SIGA Technologies is applying viral and bacterial genomics and sophisticated computational modeling in the design and development of novel products for the prevention and treatment of serious infectious diseases, with an emphasis on products for biological warfare defense. SIGA believes that it is a leader in the development of pharmaceutical agents to fight potential bio-warfare pathogens. SIGA has antiviral programs targeting smallpox and other Category A pathogens, including arenaviruses (Lassa fever, Junin, Machupo, Guanarito, Sabia, and lymphocytic choriomeningitis), dengue virus, and the filoviruses (Ebola and Marburg). For more information about SIGA, please visit SIGA's Web site at http://www.siga.com/.
This press release contains or implies certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding the efficacy of potential products, the timelines for bringing such products to market and the continued development and possible eventual approval of such products. Forward-looking statements are based on management's estimates, assumptions and projections, and are subject to uncertainties, many of which are beyond SIGA's control. Actual results may differ materially from those anticipated in any forward-looking statement. Factors that may cause such differences include the risks that (a) potential products that appear promising to SIGA or its collaborators cannot be shown to be efficacious or safe in subsequent pre-clinical or clinical trials, (b) SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market these or other potential products, (c) SIGA may not be able to obtain anticipated funding for its development projects or other needed funding, (d) SIGA may not be able to secure funding from anticipated government contracts and grants, (e) SIGA may not be able to secure or enforce sufficient legal rights in its products, including sufficient patent protection for its products and (f) regulatory approval for SIGA's products may require further or additional testing that will delay or prevent approval. 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 fiscal year ended December 31, 2007, and in other documents that SIGA has filed with the Commission. SIGA urges investors and security holders to read those documents free of charge at the Commission's Web site at http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements speak only as to the date they are made, and, except for any obligation under the U.S. federal securities laws, SIGA undertakes no obligation to publicly update any forward-looking statement as a result of new information, future events or otherwise.
SOURCE: SIGA Technologies, Inc.
KCSA Strategic Communications Todd Fromer 212-896-1215 Tfromer@kcsa.com or Marybeth Csaby, 212-896-1236 firstname.lastname@example.org or David Burke, 212-896-1258 email@example.com
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