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

Why SIGA Technologies (SIGA) Stock Plunged to a One-Year Low Today

Stocks in this article: SIGA

NEW YORK (TheStreet) -- SIGA Technologies  (SIGA) plunged to a 52-week low of $1.62 on Monday after a Delaware court ruled the company must pay a lump sum in damages to PharmAthene (PIP) for the value of its lost profits from SIGA's smallpox vaccine Tecovirimat.

The court also demanded SIGA pay prejudgment interest and some percentages of PharmAthene's attorneys' and witness fees. SIGA announced that the award amount, which has not yet been determined, would be "substantial," but it intends to appeal the ruling. SIGA also said the damages would be based on U.S. government purchases of Tecovirimat "supposedly anticipated in 2006."

PharmAthene sued for a breach of contract in 2006. PharmAthene and SIGA had previously negotiated a merger, which would include a license for PharmAthene to SIGA's vaccine that would be negotiated on in good faith if the merger agreement fell apart. It did just that, and PharmAthene sued for a license on the vaccine and damages for lost profits.

Must Read: Warren Buffett’s 25 Favorite Stocks

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

SIGA CEO Dr. Eric A. Rose said in a statement the company remains "committed to performing under SIGA's contract with" the government's Biomedical Advanced Research and Development Authority and obtaining Food and Drug Administration approval for Tecovirimat.

SIGA was down 35.4% to $1.77 at 3:29 p.m. More than 2.3 million shares had changed hands, compared to the average volume of 218,385. SIGA Chart SIGA data by YCharts

EXCLUSIVE OFFER: See inside Jim Cramer’s multi-million dollar charitable trust portfolio to see the stocks he and Stephanie Link think could be potentially HUGE winners. Click here to see the holdings for FREE.

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

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!
DOW 16,399.67 +19.26 0.12%
S&P 500 1,904.01 +17.25 0.91%
NASDAQ 4,316.0740 +57.6360 1.35%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

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