SIGA Technologies, Inc. (SIGA) (NASDAQ: SIGA), a commercial-stage
pharmaceutical company focused on the health security market, today
reported 2019 full year financial results and announced product
delivery expectations for oral TPOXX® under the HHSO100201800019C
contract with the Biomedical Advanced Research and Development
Authority (“BARDA”, and “19C BARDA Contract”, also known as the
2018 BARDA Contract). The Company also announced a $50 million
share repurchase program.
Summary 2019 Financial
Results
SIGA’s revenue for the year ended December
31, 2019 was approximately $27 million, resulting in an
operating loss of approximately $2 million. Net loss per
share was $0.15 per diluted share for the year. Net
loss per share includes items not included in the calculation of
operating loss, such as interest expense on the Term Loan,
adjustments to the fair value of warrants and benefit from income
taxes. Cash and cash equivalents, including amounts in
restricted accounts, were approximately $161 million at December
31, 2019. Amounts in restricted accounts (approximately $96
million as of December 31, 2019) are available to pay interest,
fees and principal related to the outstanding Term Loan.
Dr. Phil Gomez, CEO of SIGA, said, “The 2019
financial results reflect a transition from the 2011 BARDA Contract
to the 19C BARDA Contract with substantial product deliveries and
revenues under the 19C BARDA Contract expected to commence in
2020.”
Product Delivery Expectations in
Connection with 19C BARDA Contract
SIGA expects the near-term exercise of
procurement options by BARDA under the 19C BARDA Contract worth a
total of approximately $101 million for the procurement of 363,070
courses of oral TPOXX® (tecovirimat). Deliveries of oral
TPOXX® to the Strategic National Stockpile (SNS), under these
option exercises, are expected to start in the second quarter of
2020 and approximately $101 million of oral TPOXX® courses are
expected to be delivered to the SNS by April 2021. After the
above-mentioned expected exercise of options, the 19C BARDA
Contract would have up to $414 million of procurement-related
options remaining for future exercise.
Authorization of $50 Million Share
Repurchase Program
The Board of Directors authorized a share
repurchase program under which the Company may repurchase up to $50
million of the Company’s common stock through December 31,
2021.
The timing and actual number of shares
repurchased, if any, will depend on a variety of factors,
including: exercise of procurement options under government
contracts, alternative opportunities for strategic uses of cash,
the stock price of the Company’s common stock, market conditions,
and other corporate liquidity requirements and priorities. The
repurchase program does not obligate the Company to acquire a
specific dollar amount or number of shares and may be modified,
suspended or discontinued at any time. Repurchases under the
program may be made from time to time at the Company’s discretion
in open market transactions, through block trades, in privately
negotiated transactions, and pursuant to any trading plan that may
be adopted by the Company’s management in accordance with Rule
10b5-1 of the Securities Exchange Act of 1934, as amended, or
otherwise. Prior to executing any repurchases under this
program, the Company’s current term loan would need to be amended
or fully repaid.
“The Board’s authorization of this share
repurchase program reflects our commitment to seeking value
creation through a full range of approaches,” said Dr. Gomez.
“This program represents a path for creating positive shareholder
returns and long-term shareholder value while maintaining our
financial flexibility to opportunistically invest in potential
internal or external growth opportunities.”
Conference Call and Webcast
SIGA will host a conference call and webcast to
provide a business update today, Thursday, March 5, 2020, at 4:30
P.M. ET.
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:
13691653. The archived webcast will be available in the Events and
Presentations section of the Company's website.
ABOUT SIGA TECHNOLOGIES, INC. and
TPOXX®
SIGA Technologies, Inc. is a commercial-stage
pharmaceutical company focused on the health security market.
Health security comprises countermeasures for biological, chemical,
radiological and nuclear attacks (biodefense market), vaccines and
therapies for emerging infectious diseases, and health
preparedness. Our lead product is TPOXX®, also known as tecovirimat
and ST-246®, an orally administered and IV formulation antiviral
drug for the treatment of human smallpox disease caused by variola
virus. TPOXX® is a novel small-molecule drug and the US maintains a
stockpile of 1.7 million courses in the Strategic National
Stockpile under Project BioShield. The oral formulation of TPOXX®
was approved by the FDA for the treatment of smallpox in 2018. The
full label is here:
https://dailymed.nlm.nih.gov/dailymed/drugInfo.cfm?setid=fce826ab-4d6a-4139-a2ee-a304a913a253.
In September 2018, SIGA signed a contract of more than $600 million
with the Biomedical Advanced Research and Development Authority
(BARDA) for additional procurement and development related to both
oral and intravenous formulations of TPOXX®. For more information
about SIGA, please visit www.siga.com.
About Smallpox1
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.
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. 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 fiscal 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
United States of America federal securities laws, we undertake
no obligation to update publicly any forward-looking statements
whether as a result of new information, future events, or
otherwise.
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.
Contacts:InvestorsDavid Carey
212-867-1768david.carey@finnpartners.com
MediaStephanie
Seiler206-713-0124stephanie.seiler@finnpartners.com
1
http://www.mayoclinic.org/diseases-conditions/smallpox/basics/definition/con-20022769
SIGA TECHNOLOGIES,
INC.CONSOLIDATED BALANCE SHEETSAs
of
|
December 31, 2019 |
|
December 31, 2018 |
ASSETS |
|
|
|
Current
assets |
|
|
|
Cash and cash equivalents |
$ |
65,249,072 |
|
|
$ |
100,652,809 |
|
Restricted cash and cash equivalents, short-term |
95,737,862 |
|
|
11,452,078 |
|
Accounts receivable |
4,167,996 |
|
|
1,959,133 |
|
Inventory |
9,652,855 |
|
|
2,908,210 |
|
Prepaid expenses and other current assets |
5,234,000 |
|
|
4,317,615 |
|
Total current assets |
180,041,785 |
|
|
121,289,845 |
|
|
|
|
|
Property, plant and equipment,
net |
2,618,303 |
|
|
171,274 |
|
Restricted cash and cash
equivalents, long-term |
— |
|
|
68,292,023 |
|
Deferred tax asset, net |
14,151,002 |
|
|
11,733,385 |
|
Goodwill |
898,334 |
|
|
898,334 |
|
Other assets |
856,766 |
|
|
1,058,880 |
|
Total assets |
$ |
198,566,190 |
|
|
$ |
203,443,741 |
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities |
|
|
|
Accounts payable |
$ |
3,054,032 |
|
|
$ |
1,688,488 |
|
Accrued expenses and other current liabilities |
8,636,911 |
|
|
9,648,917 |
|
Term debt, current |
80,044,866 |
|
|
— |
|
Total current liabilities |
91,735,809 |
|
|
11,337,405 |
|
Warrant liability |
6,116,882 |
|
|
12,380,939 |
|
Other liabilities |
2,929,743 |
|
|
1,263,113 |
|
Long-term debt |
— |
|
|
75,547,597 |
|
Total liabilities |
100,782,434 |
|
|
100,529,054 |
|
Commitments and
contingencies (Note 14) |
|
|
|
Stockholders'
equity |
|
|
|
Common stock ($.0001 par value, 600,000,000 shares authorized,
81,269,868 and 80,763,350 issued and outstanding at December 31,
2019, and December 31, 2018, respectively) |
8,127 |
|
|
8,076 |
|
Additional paid-in capital |
220,808,037 |
|
|
218,697,872 |
|
Accumulated deficit |
(123,032,408 |
) |
|
(115,791,261 |
) |
Total stockholders' equity |
97,783,756 |
|
|
102,914,687 |
|
Total liabilities and stockholders'
equity |
$ |
198,566,190 |
|
|
$ |
203,443,741 |
|
SIGA TECHNOLOGIES,
INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE INCOME (LOSS)For the Years Ended
December 31
|
2019 |
|
2018 |
|
2017 |
Revenues |
|
|
|
|
|
Product sales and supportive services |
$ |
11,190,064 |
|
|
$ |
468,918,468 |
|
|
$ |
— |
|
Research and development |
15,552,021 |
|
|
8,135,314 |
|
|
12,268,960 |
|
Total revenues |
26,742,085 |
|
|
477,053,782 |
|
|
12,268,960 |
|
|
|
|
|
|
|
Operating expenses |
|
|
|
|
|
Cost of sales and supportive services |
1,782,838 |
|
|
95,268,974 |
|
|
— |
|
Selling, general and administrative |
13,252,136 |
|
|
12,879,738 |
|
|
12,303,050 |
|
Research and development |
13,303,149 |
|
|
13,016,183 |
|
|
16,679,712 |
|
Patent expenses |
726,105 |
|
|
789,489 |
|
|
909,946 |
|
Lease termination |
— |
|
|
— |
|
|
1,225,421 |
|
Total operating expenses |
29,064,228 |
|
|
121,954,384 |
|
|
31,118,129 |
|
Operating (loss) income |
(2,322,143 |
) |
|
355,099,398 |
|
|
(18,849,169 |
) |
Gain (loss) from change in
fair value of warrant liability |
5,091,256 |
|
|
(6,922,624 |
) |
|
(4,738,753 |
) |
Interest expense |
(15,769,768 |
) |
|
(15,478,203 |
) |
|
(14,758,140 |
) |
Other income, net |
2,822,232 |
|
|
78,940,985 |
|
|
16,788 |
|
(Loss) income before income taxes |
(10,178,423 |
) |
|
411,639,556 |
|
|
(38,329,274 |
) |
Benefit for income taxes |
2,937,276 |
|
|
10,168,272 |
|
|
2,093,790 |
|
Net and comprehensive (loss) income |
$ |
(7,241,147 |
) |
|
$ |
421,807,828 |
|
|
$ |
(36,235,484 |
) |
Basic (loss) earnings per share |
$ |
(0.09 |
) |
|
$ |
5.28 |
|
|
$ |
(0.46 |
) |
Diluted (loss) earnings per share |
$ |
(0.15 |
) |
|
$ |
5.18 |
|
|
$ |
(0.46 |
) |
Weighted average shares outstanding: basic |
81,031,254 |
|
|
79,923,295 |
|
|
78,874,494 |
|
Weighted average shares outstanding: diluted |
82,175,023 |
|
|
82,708,472 |
|
|
78,874,494 |
|
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