ANNAPOLIS, Md., Dec. 15, 2015 /PRNewswire/ -- PharmAthene,
Inc. (NYSE MKT: PIP) reported today that SIGA Technologies, Inc.
filed with the U.S. Bankruptcy Court for the Southern District of
New York a reorganization plan
that sets out the terms and conditions under which SIGA will seek
to exit from bankruptcy. The plan filed was negotiated between SIGA
and the Statutory Creditor's Committee of which PharmAthene is a
member. The plan is subject to approval by the bankruptcy court, on
a timeline to be determined. A copy of the plan is available at:
https://cases.primeclerk.com/siga/Home-DownloadPDF?id1=MjQwOTg4&id2=0.
About PharmAthene
PharmAthene is a biodefense company
engaged in the development of next generation medical
countermeasures against biological and chemical threats. The
Company's development portfolio includes two next generation
Anthrax vaccines that are intended to improve protection while
having favorable dosage and storage requirements compared other
Anthrax vaccines.
On January 15, 2015, the
Delaware Court of Chancery issued
its Final Order and Judgment in PharmAthene's litigation against
SIGA. The Court of Chancery awarded to PharmAthene lump sum
expectation damages for the value of PharmAthene's lost profits for
SIGA's smallpox antiviral, Tecovirimat, also known as ST-246®
(formerly referred to as "Arestvyr™" and referred to by SIGA in its
recent SEC filings as "Tecovirimat"). In addition, the Court of
Chancery ordered SIGA to pay pre-judgment interest and varying
percentages of PharmAthene's reasonable attorneys' and expert
witness fees. SIGA filed a notice of appeal with the Delaware
Supreme Court in which it challenged various findings of the Court
of Chancery and sought to set aside the Final Order and Judgment,
and PharmAthene filed a notice of cross-appeal. On October 7, 2015 oral arguments in SIGA's appeal
and PharmAthene's cross-appeal were heard in the Delaware Supreme
Court. There can be no assurances that the Delaware Supreme Court
will rule in PharmAthene's favor. PharmAthene's ability to collect
a monetary judgment from SIGA remains subject to that appeal and
further proceedings in the Bankruptcy Court.
Forward-Looking Statement Disclaimer
Except for the
historical information presented herein, matters discussed may
constitute forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995 that are subject
to certain risks and uncertainties that could cause actual results
to differ materially from any future results, performance or
achievements expressed or implied by such statements. Statements
that are not historical facts, including statements preceded by,
followed by, or that include the words "potential"; "believe";
"anticipate"; "intend"; "plan"; "expect"; "estimate"; "could";
"may"; "should"; "will"; "project"; "potential"; or similar
statements are forward-looking statements. PharmAthene disclaims
any intent or obligation to update these forward-looking statements
other than as required by law. Risks and uncertainties include
risks associated with our interest in the judgment relating to
Tecovirimat, also known as ST-246® (formerly referred to as
"Arestvyr™" and referred to by SIGA in its recent SEC filings as
"Tecovirimat") (including the risk that we will not be able to
collect any amounts related thereto); and other risks detailed from
time to time in PharmAthene's Forms 10-K and 10-Q under the caption
"Risk Factors" and in its other reports filed with the U.S.
Securities and Exchange Commission.
The decision of the Delaware
Court of Chancery could be reversed, remanded or otherwise changed.
There can be no assurances if and when PharmAthene will receive any
payments from SIGA as a result of the decision. SIGA has stated
publicly that it does not currently have cash sufficient to satisfy
the award. It is also uncertain whether SIGA will have such cash in
the future. PharmAthene's ability to collect the Judgment depends
upon a number of factors, including SIGA's financial and
operational success, which is subject to a number of significant
risks and uncertainties (certain of which are outlined in SIGA's
filings with the SEC), as to which we have limited knowledge and
which we have no ability to control, mitigate or fully evaluate.
Because SIGA has filed for protection under the federal bankruptcy
laws, PharmAthene is automatically stayed from taking any
enforcement action in the Delaware
Court of Chancery. By agreement of the parties, and with the
approval of the Bankruptcy Court, the automatic stay has been
lifted for the sole purpose of allowing the Delaware Court of Chancery to enter a money
judgment and to allow the parties to exercise their appellate
rights. Our ability to collect a money judgment from SIGA, if any,
remains subject to further proceedings in the Bankruptcy Court. No
assurance can be given that the U.S. Bankruptcy Court for the
Southern District of New York will
approve the reorganization plan or that as a result thereof, we
will receive any award of money damages from SIGA or otherwise
receive any benefit therefrom.
Copies of PharmAthene's public disclosure filings are available
on our website under the investor relations tab at
www.PharmAthene.com.
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SOURCE PharmAthene, Inc.