ANNAPOLIS, Md., Dec. 24, 2015 /PRNewswire/ -- PharmAthene,
Inc. (NYSE MKT: PIP) announced today that the Delaware Supreme
Court affirmed the Delaware Court
of Chancery's decision to award PharmAthene lump sum expectation
damages for the value of PharmAthene's lost profits for SIGA's
smallpox antiviral, Tecovirimat. The Delaware Court of Chancery awarded PharmAthene
$113 million in expectation damages
plus interest and other costs, which if calculated based on the
original decision (and including post-judgment interest) would
provide for an estimated total of approximately $205 million. PharmAthene's ability to collect a
monetary judgment, including post-petition interest, from SIGA
remains subject to further proceedings in the Federal Bankruptcy
Court. SIGA has filed a reorganization plan with the Court that
provides for among other things, the process by which PharmAthene's
judgment may be satisfied, but that plan has not been approved by
the Bankruptcy Court and remains subject to change, withdrawal or
rejection by the Court. A copy of the Delaware Supreme Court
decision is available at:
http://courts.delaware.gov/opinions/download.aspx?ID=234170.
A copy of the SIGA reorganization plan filed with the bankruptcy
court 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.
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 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 final award may be subject to further proceedings before the
Delaware Courts. 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. On December 15,
2015, SIGA 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. 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.