NEW YORK, May 4, 2010 (GlobeNewswire via COMTEX News Network) -- SIGA Technologies, Inc. (Nasdaq:SIGA), a company specializing in the development of drugs to fight biowarfare pathogens, today reported its financial results for the quarter ended March 31, 2010.
Total revenues for the quarter ended March 31, 2010 were $5.1 million compared to $1.9 million for the same period last year and net operating loss was $3.0 million compared to $2.9 million in the first quarter 2009. Net income per common share was $0.10 compared to $0.19 in the quarter ended March 31, 2009.
Ayelet Dugary, Chief Financial Officer of SIGA Technologies stated, "Our financial performance for the first quarter in 2010 is in line with our expectations. We continue to advance the development of ST-246 and have made significant investments in our product pipeline including our dengue program and our program for the development of a broad-spectrum antiviral drug. These activities are supported by our strengthened balance sheet and our expanding portfolio of U.S. Government grants and contracts."
Q1 2010 Key Financial Results
Revenues from research and development grants and contracts were $5.1 million compared to $1.9 million in the first quarter of 2009. The increase of $3.4 million or 164% mainly relates to $2.7 million increase in revenue generated from programs supporting the advanced development of ST-246(R) including manufacturing activities and the development of alternative formulations. We have also recognized $305,000 from our two new contracts for the development of a broad spectrum antiviral drug.
Research and Development
For the first quarter of 2010, research and development expenses were $5.8 million, an increase of $3.1 million, or 116%, from $2.7 million recognized in the first quarter of 2009. Expenditures related to the manufacturing, packaging, and stability testing of ST-246 increased $2.3 million. Other costs related to ST-246 and the development of our other lead drug candidates increased $546,000 from the prior year period. Employee compensation expenses increased $200,000 highlighting the increase in our research and development personnel from 40 on March 31, 2009 to 51 on March 31, 2010.
Selling, General and Administrative Expenses
Selling, general and administrative expenses were $2.0 million compared to $2.1 million in the first quarter of 2009. The small decline of $100,000 or 4.4% is mainly due to lower compensation-related costs.
Patent preparation Expenses
Patent expenses were $320,000 compared to $109,000 in the first quarter of 2009 reflecting reinforced efforts to protect our lead drug candidates in expanded geographic territories.
Financial Condition and Liquidity
Cash, cash equivalents and short term investments on March 31, 2010 were $17.3 million compared to $19.5 million on December 31, 2009. Additionally, our accounts receivable balance on March 31, 2010 was $3.3 million, which is primarily comprised of balances due for expanded research and development activities performed in February and March, 2010.
Quarterly Report on Form 10-Q
SIGA is filing today with the Securities and Exchange Commission its First Quarter Report on Form 10-Q for the quarter ending March 31, 2010. SIGA urges its investors to read this quarterly filing as well as its Annual Report on Form 10-K, also filed with the SEC, for further details concerning the Company. The first quarter on form 10-Q and the Annual Report on Form 10-K are also available on the Company's website, at http://www.siga.com.
This press release contains 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 availability of funding sources for continued development 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 the control of SIGA. Actual results may differ materially from those anticipated in any forward-looking statement. Factors that may cause such differences include (i) the risk that 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, (ii) the risk that SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market these or other potential products, (iii) the risk that SIGA may not be able to obtain anticipated funding for its development projects or other needed funding, (iv) the risk that SIGA may not be able to secure funding from anticipated government contracts and grants, (v) the risk that SIGA may not be able to secure or enforce sufficient legal rights in its products, including patent protection for its products, (vi) the risk that any challenge to our patent and other property rights, if adversely determined, could affect our business and, even if determined favorably, could be costly, (vii) 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 seeking or obtaining needed approvals to market these products, (viii) the risk that BARDA may not complete the procurement set forth in its solicitation for the acquisition of smallpox antiviral for the strategic national stockpile, or may complete it on different terms , (ix) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA's efforts, (x) the risk that changes in domestic and foreign economic and market conditions may adversely affect SIGA's ability to advance its research or its products, and (xi) the effect of federal, state, and foreign regulation on SIGA's businesses. 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, 2009, 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 of the date they are made, and except for our ongoing obligations under the United States of America federal securities laws, we undertake no obligation to publicly update any forward-looking statements whether as a result of new information, future events or otherwise.
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/.
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SOURCE: SIGA Technologies, Inc.
CONTACT: KCSA Strategic Communications Todd Fromer 212-896-1215 Tfromer@kcsa.com Marybeth Csaby 212-896-1236 firstname.lastname@example.org
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