SIGA Technologies, Inc. Reports Financial Results for the First Quarter of 2020
- Company Recently Announced Exercise of Contract Options Totaling
- Corporate Update Conference Call Today at
First Quarter 2020 Financial Results Summary
SIGA’s revenue for the three months ended March 31, 2020 was approximately
Recent Key Activities:
April 29, 2020, the Company announced the exercise by BARDA of procurement options under the 2018 Biomedical Advanced Research and Development Authority(“BARDA”) contract (“19C BARDA Contract”) worth a total of approximately $101.3 millionfor the procurement of oral TPOXX® (tecovirimat). In connection with the exercise of these options, SIGA reiterates its previously disclosed expectation that $101.3 millionof oral TPOXX® courses will be delivered to the U.S. Governmentby April 2021, with deliveries to the U.S. Governmentto start in the second quarter of 2020. After the above-mentioned exercise of options and related deliveries, the 19C BARDA Contract would have up to $414 millionof procurement-related options remaining for future exercise by BARDA.
April 3, 2020, the Company announced that the Canadian Department of National Defence(“CDND”) awarded a contract to Meridian Medical Technologies, Inc.(“Meridian” a Pfizer Company) (“Canadian Contract”), in which the CDND will purchase up to 15,325 courses of oral TPOXX® over four years for a total value of $14.3 million, with an initial purchase of 2,500 courses for $2.3 millionexpected to be delivered by the end of the second quarter of 2020. The remaining purchases of 12,825 courses, at the option of the CDND, are expected to occur after regulatory approval of oral TPOXX® in Canada. Meridian is counterparty to the Canadian Contract and SIGA is responsible for manufacture and delivery of oral TPOXX®. The contract award was coordinated between SIGA and Meridian under the international promotion agreement that was entered into by the parties on June 3, 2019.
March 13, 2020, the Company voluntarily prepaid its Term Loan and accrued interest in an approximate aggregate amount of $87.2 million. Upon such prepayment, the Term Loan was extinguished.
February 28, 2020, the United States Department of Defenseincreased funding by approximately $7 million, up to approximately $19.5 million, on the multi-year contract with SIGA to support work necessary to gain a potential label expansion for oral TPOXX® that would include Post-Exposure Prophylaxis (PEP) of smallpox.
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 CMOs 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.
“The COVID-19 pandemic reinforces the importance of having preparedness countermeasures available to combat the spread of deadly infectious diseases,” said Dr. Phil Gomez, CEO of SIGA. “Recent orders for TPOXX from BARDA and the
Conference Call and Webcast
SIGA will host a conference call and webcast to provide a business update today,
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. 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: 13700583. The archived webcast will be available in the Events and Presentations section of the Company's website.
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.
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
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.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
|Cash and cash equivalents||$||77,377,300||$||65,249,072|
|Restricted cash and cash equivalents, short-term||-||95,737,862|
|Prepaid expenses and other current assets||2,617,852||5,234,000|
|Total current assets||98,022,808||180,041,785|
|Property, plant and equipment, net||2,500,641||2,618,303|
|Deferred tax assets, net||16,304,697||14,151,002|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued expenses and other current liabilities||16,658,698||8,636,911|
|Total debt, current||-||80,044,866|
|Total current liabilities||21,424,515||91,735,809|
|Commitments and contingencies|
|Common stock (
|Additional paid-in capital||221,057,307||220,808,037|
|Total stockholders’ equity||88,142,122||97,783,756|
|Total liabilities and stockholders’ equity||$||118,574,463||$||198,566,190|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
INCOME (LOSS) (UNAUDITED)
|Three Months Ended
|Product sales and supportive services||$||113,009||$||7,142,400|
|Research and development||2,506,756||3,316,684|
|Cost of sales and supportive services||109,094||915,367|
|Selling, general and administrative||3,176,024||3,166,566|
|Research and development||3,150,105||3,997,281|
|Total operating expenses||6,617,820||8,267,130|
|Operating (loss) income||(3,998,055||)||2,191,954|
|(Loss) gain from change in fair value of warrant liability||(16,065||)||3,136,265|
|Loss on extinguishment of Term Loan||(4,981,461||)||-|
|Other income, net||412,363||736,129|
|(Loss) income before income taxes||(11,600,035||)||2,135,930|
|Benefit (provision) for income taxes||2,702,506||(506,153||)|
|Net and comprehensive (loss) income||$||(8,897,529||)||$||1,629,777|
|Basic (loss) income per share||$||(0.11||)||$||0.02|
|Diluted (loss) per share||$||(0.11||)||$||(0.02||)|
|Weighted average shares outstanding: basic||81,240,105||80,913,320|
|Weighted average shares outstanding: diluted||81,240,105||82,139,108|
Source: SIGA Technologies Inc.