SIGA Technologies Reports Financial Results For The Third Quarter Of 2010

NEW YORK, Nov. 2, 2010 (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 third quarter and the nine months ended September 30, 2010.

Revenue for the third quarter of 2010 was $6.6 million compared to $3.9 million in 2009, and operating loss was $2.4 million compared to $2.6 million in 2009. Net loss per share for the three-month periods ending September 30, 2010 and 2009 was $0.10 and $0.03, respectively.

For the nine months ended September 30, 2010, revenue was $16.2 million compared to $9.9 million in 2009, and net operating loss was $8.5 million compared to $8.1 million in 2009. Net loss per common share was $0.33 compared to $0.59 in 2009.

Third Quarter and Nine Months 2010 Key Financial Results

Revenues

For the third quarter of 2010, revenue from research and development ("R&D") grants and contracts was $6.6 million compared to $3.9 million for the year-earlier period. The increase of $2.7 million is primarily due to $2.1 million of revenues recorded in the third quarter of 2010 from grants supporting the development of drug candidates for arenaviruses including Lassa fever as compared to $130,000 recorded in 2009. Revenue from grants and contracts supporting the development of a broad-spectrum antiviral drug increased $461,000 from the third quarter of 2009, and revenue generated from our grants and contracts for the development of ST-246 ^® and its alternative formulations increased $360,000 from the third quarter of 2009.

For the nine-month period ending September 30, 2010, revenue from R&D grants and contracts increased by $6.3 million, to $16.2 million, from $9.9 million in the comparable period in 2009. The increase in revenue primarily relates to a $2.0 million increase in revenue generated from grants and contracts supporting the development of our lead drug candidate, ST-246 ^®, and its alternative formulations, an increase of $1.7 million in revenue generated from our grant and contract for the development of a broad-spectrum antiviral drug, and a $2.5 million increase from grants supporting the development of drug candidates for arenavirus pathogens.

Research and Development

For the third quarter of 2010, R&D expenses were $7.4 million, an increase of $2.6 million from $4.8 million recognized for the third quarter of 2009, primarily due to an increase of $1.4 million in expenses supporting our arenavirus program, an increase of $607,000 in expenses supporting the development of ST-246 ^® and its alternative formulations, and an increase of $244,000 in expenses supporting the development of a broad-spectrum antiviral drug. In addition, employee-related compensation costs for the third quarter of 2010 increased by approximately $220,000 from the comparable period in 2009.

For the nine months ending September 30, 2010 and 2009, R&D expenses were $18.2 million and $12.2 million, respectively, reflecting an increase of $6.0 million. Expenses related to the continued development of ST-246 ^® and its alternative formulations, including costs associated with our commercial manufacturing validation campaign, increased $2.3 million from the nine months in 2009.  Expenditures associated with the development of drug candidates for arenavirus pathogens increased $1.8 million, expenses incurred in connection with the development of a broad-spectrum antiviral drug increased $675,000 and employee-related compensation expenses increased $645,000 for the nine-month period in 2010.

Selling, General and Administrative Expenses

Selling, general and administrative ("SG&A") expenses for the third quarter of 2010 were $1.39 million, a decrease of $133,000 from $1.52 million for the third quarter of 2009. The slight decline in SG&A expenses mainly relates to lower legal and accounting fees and a decrease in non-cash stock-based compensation.