NEW YORK, March 9, 2011 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (Nasdaq:SIGA), a company specializing in the development of pharmaceutical agents to fight biowarfare pathogens, today reported its financial results for the fourth quarter and year ended December 31, 2010.
Revenue for the year ended 2010 was $19.2 million compared to $13.8 million in 2009, and the operating loss was $12.7 million compared to $11.9 million in 2009. Net loss per share, which includes non-operational items such as the fair market valuation of certain warrants, was $0.62 and $0.52 for the years ended December 31, 2010 and 2009, respectively.
For the three months ended December 31, 2010, revenue was $3.1 million compared to $4.0 million in the fourth quarter of 2009, and net operating loss was $4.2 million compared to $3.7 million in 2009.
In addition to reporting financial results, SIGA is also reporting that it responded to the Request for Proposal 11-100-SOL-00007 from the Biomedical Advanced Research and Development Authority ("BARDA") prior to the deadline.
2010 Key Financial Results
Revenues
For 2010, revenue from research and development ("R&D") grants and contracts was $19.2 million compared to $13.8 million for the year ended December 31, 2009. The increase of $5.4 million is primarily due to a $2.4 million revenue increase for the Company's arenavirus antiviral program and a $2.2 million revenue increase for its broad-spectrum antiviral drug program. Revenue also increased by $900,000 for the Company's ST-246 program.
Research and Development
For 2010, research and development ("R&D") expenses were $22.6 million, an increase of $5.2 million from $17.4 million recognized for the year ended December 31, 2009. The increase is primarily due to activity in the arenavirus and broad-spectrum antiviral programs. Vendor-related expenses increased $1.8 million for the arenavirus program and $860,000 for the broad-spectrum program. Employee-related compensation costs, including costs related to the arenavirus and broad-spectrum programs, increased $925,000.
Selling, General and Administrative Expenses
Selling, general and administrative expenses ("SG&A") for the years ended December 31, 2010 and 2009 were $8.1 million and $7.5 million, respectively, an increase of approximately $600,000. This increase reflects higher legal fees and expenses associated with business development and risk management activities.
Patent Preparation Expenses
Patent preparation expenses for the years ended December 31, 2010 and 2009 were $1.1 million and $734,000, respectively. The increase of $414,000 is mainly related to the Company's efforts to protect ST-246 in expanded geographic territories.
Financial Condition and Liquidity
Cash, cash equivalents and short-term investments on December 31, 2010 were $21.3 million, compared to $19.5 million on December 31, 2009.
Annual Report on Form 10-K
SIGA is filing today with the Securities and Exchange Commission its Annual Report on Form 10-K for its fiscal year ending December 31, 2010. SIGA urges its investors to read this Annual Report on Form 10-K for further details concerning the Company. The Annual Report on Form 10-K is also available on the Company's website, at http://www.siga.com.
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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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, including statements regarding the safety and efficacy of potential products, the progress of its development programs and timelines for bringing such products to market, the pursuit of the BARDA Smallpox RFP 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 the U.S. Biomedical Advanced Research and Development Authority ("BARDA") may not complete a procurement of a smallpox antiviral for the strategic national stockpile, or may complete it on terms other than those announced to date, (ix) the risk that any contractual award we may receive to supply a smallpox antiviral may be subject to one or more protests which may cause such contract award to be delayed or denied, (x) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA's efforts, (xi) the risk that the changes in domestic and foreign economic and market conditions may adversely affect SIGA's ability to advance its research or its products, and (xii) 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 presentation, 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, 2010, 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 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.
CONTACT: KCSA Strategic CommunicationsTodd Fromer / Marybeth Csaby
212-896-1215 / 1236
Tfromer@kcsa.com / mcsaby@kcsa.com
Source:
SIGA Technologies, Inc.
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