SIGA Technologies, Inc. Reports Financial Results for Three and Six Months Ended June 30, 2020
- Second Quarter includes Deliveries to SNS and First International Delivery -
- Corporate Update Conference Call Today at
“SIGA’s successful second quarter was highlighted by the initial deliveries of TPOXX® to the
Summary Financial Results
($ in millions, except per share amounts)
Three Months Ended
Operating Income (Loss) (1)
Income (Loss) before Income Taxes (1)
Net Income (Loss)
Diluted Income (Loss) per Share
Six Months Ended
Operating Income (1)
Income (Loss) before Income Taxes (1)
Net Income (Loss)
Diluted Income (Loss) per Share
(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:
July 30, the Company announced that it filed a Marketing Authorisation Application (MAA) with the European Medicines Agency(EMA) for oral tecovirimat. SIGA is targeting approval for the second half of 2021.
June 25, the Company announced that approximately 117,000 courses of oral TPOXX® were delivered to the Strategic National Stockpile. SIGA has recognized $36.2 millionof revenue in connection with these deliveries, of which $3.6 millionrelates to amounts previously received in connection with raw material procurement and recorded as deferred revenue.
June 15, the Company announced that the United States Department of Defense(“DoD”) increased research and development funding to approximately $23 million in connection with the DoD contract, to support work necessary to obtain a potential label expansion from the U.S. Food and Drug Administration (FDA) for oral TPOXX to cover Post-Exposure Prophylaxis (PEP), in addition to the currently approved labeling for the treatment of smallpox.
June 1, the Company announced its first international delivery of TPOXX® (tecovirimat) with 2,500 courses delivered to the Canadian Department of National Defence (CDND). In connection with this delivery, SIGA recognized revenue of $2.3 million. The delivery was made as part of the contract awarded by the CDND 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. Remaining purchases of up to 12,825 courses under this contract are at the option of the CDND and 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 entered into by the parties on June 3, 2019.
Share Repurchase Activity
During the second quarter, SIGA repurchased approximately 2.5 million shares of its common stock, for approximately
Product Delivery Expectations in Connection with the 19C BARDA Contract
Pursuant to options already exercised under the 19C BARDA Contract, SIGA expects to deliver approximately 246,000 courses of oral TPOXX to the SNS (in addition to those courses recently delivered) by
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 (“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, 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,
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: 13706604. 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||$||53,065,833||$||65,249,072|
|Restricted cash and cash equivalents, short-term||-||95,737,862|
|Prepaid expenses and other current assets||1,382,499||5,234,000|
|Total current assets||105,066,979||180,041,785|
|Property, plant and equipment, net||2,366,135||2,618,303|
|Deferred tax assets, net||11,183,600||14,151,002|
|LIABILITIES AND STOCKHOLDERS’ EQUITY|
|Accrued expenses and other current liabilities||14,931,370||8,636,911|
|Total debt, current||-||80,044,866|
|Total current liabilities||15,561,535||91,735,809|
|Commitments and contingencies|
|Common stock (
|Additional paid-in capital||221,380,828||220,808,037|
|Total stockholders’ equity||94,133,018||97,783,756|
|Total liabilities and stockholders’ equity||$||120,416,954||$||198,566,190|
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
|Three Months Ended
||Six Months Ended
|Product sales and supportive services||$||38,624,450||$||-||$||38,737,459||$||7,142,400|
|Research and development||1,724,327||3,907,611||4,231,083||7,224,295|
|Cost of sales and supportive services||4,796,768||-||4,905,863||915,367|
|Selling, general and administrative||3,870,927||3,392,228||7,046,952||6,558,794|
|Research and development||2,709,743||2,038,323||5,859,847||6,035,604|
|Total operating expenses||11,551,641||5,612,861||18,169,462||13,879,991|
|Operating income (loss)||28,797,136||(1,705,250||)||24,799,080||486,704|
|(Loss) gain from change in fair value of warrant liability||(1,619,587||)||656,523||(1,635,652||)||3,792,788|
|Loss on extinguishment of Term Loan||-||-||(4,981,461||)||-|
|Other income, net||31,931||737,577||444,295||1,473,706|
|Income (loss) before income taxes||27,209,480||(4,282,181||)||15,609,445||(2,146,251||)|
|(Provision) benefit for income taxes||(6,319,322||)||1,119,689||(3,616,816||)||613,536|
|Net and comprehensive income (loss)||$||20,890,158||$||(3,162,492||)||$||11,992,629||$||(1,532,715||)|
|Basic income (loss) per share||$||0.26||$||(0.04||)||$||0.15||$||(0.02||)|
|Diluted income (loss) per share||$||0.26||$||(0.05||)||$||0.15||$||(0.06||)|
|Weighted average shares outstanding: basic||80,340,695||80,986,524||80,790,400||80,950,124|
|Weighted average shares outstanding: diluted||80,516,863||82,114,661||80,959,812||82,129,601|
Source: SIGA Technologies Inc.