NEW YORK, Aug. 10, 2014 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (Nasdaq:SIGA), a company specializing in the development and commercialization of solutions for serious unmet medical needs and biothreats, announced that, on August 8, 2014, the Delaware Court of Chancery issued its decision on remand in the litigation begun by PharmAthene, Inc. in 2006. In his opinion, Vice Chancellor Parsons determined, among other things, that PharmAthene is entitled to a lump sum damage award in a still unspecified amount, with interest and fees, based on U. S. Government purchases of SIGA's smallpox drug supposedly anticipated in 2006. The total award is likely to be substantial, but it will not be established until after the Court considers calculations to be provided by a designated expert. In coming to its conclusion, the Court reversed its own prior ruling that expectation damages were not recoverable because they were too speculative. The Court's most recent decision now holds that expert testimony from the original trial, which it had previously found to be too speculative, supports an award of expectation damages. William J. Haynes II, SIGA's General Counsel, commented, "While we are not surprised that the Court left undisturbed SIGA's ownership and control of our smallpox drug, we respectfully disagree with the Chancery Court's decision on damages. We believe that aspect of this decision is not supported by the record or the law, and we expect to appeal it to the Supreme Court of Delaware."
Dr. Eric A. Rose, SIGA's Chief Executive Officer, also commented, "Notwithstanding this disappointing Chancery Court decision, we remain committed to performing under SIGA's contract with BARDA, obtaining FDA approval for our smallpox drug, Tecovirimat, and growing our company."
Either party may appeal the portions of the trial court rulings that were unfavorable to that party within 30 days of entry of judgment by the court. SIGA currently expects to appeal the judgment after it is entered, but no assurance can be given that any such appeal will be successful.
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