This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

SIGA Tech Surges on Possible Government Contract

Stocks in this article: SIGA

NEW YORK ( TheStreet) -- SIGA Technologies (SIGA - Get Report) investors appeared to get the news Wednesday they'd long been hoping for -- a giant contract to supply the U.S. government with smallpox vaccines intended to thwart the impact of a potential act of bioterrorism.

In a celebratory press release issued before the opening bell Wednesday, SIGA said the contract, for 1.7 million doses, would generate a total of $500 million in revenue, and as much as $2.8 billion if "all options are exercised."

The stock predictably exploded in frantic trading Wednesday. In late-morning action, it was changing hands at $12.00, up 40% from the previous close. Earlier this year, in June, SIGA shares traded as low as $6.15 as hopes about the contract flagged.

Indeed, SIGA's potential as a going concern was largely based on winning the contract, administered by the Department of Health and Human Services. The U.S. is building a national stockpile of drugs against the fear of some diabolical unleashing of deadly diseases by terrorists.

But there was one hitch. The obscure New York-based biotech said that the government agency has "announced its intention" to award the contract.

SIGA's rival in the bidding for the vaccine-supply deal, Chimerix, a Durham, N.C., drug developer, has filed a protest against the SIGA award. Chimerix is arguing that SIGA, which has about 55 full-time employees, isn't a small business, one of the government's conditions for the contract.

SIGA said it will "respond promptly" to the protest, which will be heard by the Small Business Administration.

As it stands, then, there is no contract. In its press release, SIGA said it expects to defeat Chimerix's protest, but that "there can be no assurance concerning the outcome."

-- Written by Scott Eden in New York

>To contact the writer of this article, click here: Scott Eden.

>To follow the writer on Twitter, go to http://twitter.com/ScottEden.

>To submit a news tip, send an email to: tips@thestreet.com.

Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs