This Day On The Street
Continue to site
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

Siga Technologies Plunges On Contract Reversal

NEW YORK (AP) â¿¿ Shares of Siga Technologies Inc. declined Monday after the company said a federal agency determined it is not eligible for small business assistance, meaning it may not receive a smallpox treatment contract worth up to $2.8 billion.

Siga's shares plunged as much as 22.5 percent in morning trading.

Last month, the U.S. Department of Health and Human Services said it intended to give Siga a contract to deliver 1.7 million doses of smallpox treatment. The deal was worth $500 million, with options that could have increased its value to $2.8 billion. A competitor protested the award.

Siga said Sunday that an office within the Small Business Administration determined the company is not a small business. Siga plans to appeal the decision, and will continue developing the smallpox treatment, which is called ST-246.

According to Siga's latest annual report, which was filed in March, the company had 55 full-time employees. Its market capitalization of $663 million as of Friday.

The protest, which was filed by Chimerix Inc., is based on the company's size as of March 2009. Siga had 43 employees at the time.

RBC Capital Markets analyst Jason Kantor said he thinks Siga will ultimately get the contract. He said Siga is still small enough to meet the Small Business Administration's standards. The SBA may have based its decision on Siga's relationship with MacAndrews & Forbes Holdings Inc., a much larger holding company run by billionaire investor Ronald Perelman. As of March 2009, MacAndrews & Forbes owned 13.4 percent of Siga, he said.

Siga shares fell $1.39, or 10.5 percent, to $11.83 in midday trading. The shares are up 54.4 percent since Oct. 12, the day before the award was announced. The stock jumped 45.7 percent on Oct. 13.
Copyright 2010 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr 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

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free


Chart of I:DJI
DOW 16,790.19 +13.76 0.08%
S&P 500 1,979.92 -7.13 -0.36%
NASDAQ 4,748.3610 -32.9030 -0.69%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs