ANNAPOLIS, Md., Jan. 15, 2015 /PRNewswire/ -- PharmAthene,
Inc. (NYSE MKT: PIP) announced today that the Delaware Court of Chancery has entered its
Final Order and Judgment in the Company's litigation against SIGA
Technologies, Inc. The Court's judgment against SIGA totaled
$194,649,041.74, including
$113,116,985.00 in lump sum
expectation damages for the value of PharmAthene's lost profits for
SIGA's smallpox antiviral, Tecovirimat, and $81,532,056.74 in pre-judgment interest and
attorneys' and expert witness fees. In addition, SIGA will be
required to pay post-judgment interest of $30,663.89 per day, beginning today.
The court's determination, along with the decision itself, will
remain subject to appeal by SIGA to the Delaware
Supreme Court. Because SIGA has filed for protection under
the Federal bankruptcy laws, PharmAthene is automatically
stayed from taking any enforcement action in the Delaware
Court of Chancery. PharmAthene's ability to collect a money
judgment from SIGA remains subject to further proceedings in
the Bankruptcy Court.
A copy of the Court's opinions in the case, including the Final
Order and Judgment, are available on the Company's website at
www.pharmathene.com under the "Investor Relations" tab.
About PharmAthene
PharmAthene is a biodefense company engaged in the development
and commercialization of next generation medical countermeasures
against biological and chemical threats. PharmAthene's current
biodefense portfolio includes the following product candidates:
- SparVax® - a next generation recombinant protective
antigen (rPA) anthrax vaccine (liquid and lyophilized
formulations)
- rBChE bioscavenger - a medical countermeasure for nerve agent
poisoning by organophosphorous compounds, including nerve gases and
pesticides
- Valortim® - a fully human monoclonal antibody for
the prevention and treatment of anthrax infection
In August 2014, the Delaware Court of Chancery issued a Memorandum
Opinion and Order and awarded to PharmAthene lump sum expectation
damages for the value of PharmAthene's lost profits for SIGA
Technologies, Inc.'s smallpox antiviral, Tecovirimat, also known as
ST-246® (formerly referred to as "Arestvyr™" and
referred to by SIGA in its Quarterly Report on Form 10-Q for the
quarterly period ended September 30,
2014 as "Tecovirimat"). In addition, the Court of Chancery
ordered SIGA to pay pre-judgment interest and varying percentages
of PharmAthene's reasonable attorneys' and expert witness
fees. The court's Final Order and Judgment from January 15, 2015 will remain subject to
appeal.
Forward-Looking Statement Disclaimer
Except for the historical information presented herein, matters
discussed may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995
that are subject to certain risks and uncertainties that could
cause actual results to differ materially from any future results,
performance or achievements expressed or implied by such
statements. Statements that are not historical facts, including
statements preceded by, followed by, or that include the
words "potential"; "believe"; "anticipate"; "intend"; "plan";
"expect"; "estimate"; "could"; "may"; "should"; "will"; "project";
"potential"; or similar statements are forward-looking statements.
PharmAthene disclaims any intent or obligation to update these
forward-looking statements other than as required by law. Risks and
uncertainties include risks associated with our interest in
Tecovirimat, also known as ST-246® (formerly referred to
as "Arestvyr™" and referred to by SIGA in its Quarterly Report on
Form 10-Q for the quarterly period ended September 30, 2014 as "Tecovirimat"); risks
associated with the reliability of the results of the studies
relating to human safety and possible adverse effects resulting
from the administration of the Company's product candidates;
funding delays and/or reductions or elimination of U.S. government
funding and/or non-renewal of expiring funding for one or more of
the Company's development programs, such as BARDA's recent decision
to de-scope the current SparVax® anthrax vaccine
contract through a partial termination for convenience, or a
decision by NIAID not to exercise its options under our
September 2014 contract after we
receive funding of approximately $5.2
million over the base period; risks associated with our
common stock, risks associated with the GE Loan Agreement, risks
associated with our net operating loss carryforwards, or NOLs,
risks associated with the award of government contracts to our
competitors or delays caused by third parties challenging
government contract awards to us; risks associated with unforeseen
safety and efficacy issues; risks associated with challenges
related to the development, technology transfer, scale-up, and/or
process validation of manufacturing processes for our product
candidates; risks associated with unexpected determinations that
these product candidates prove not to be effective and/or capable
of being marketed as products; risks associated with accomplishing
any future strategic acquisitions or business combinations; and
other risks detailed from time to time in PharmAthene's Forms 10-K
and 10-Q under the caption "Risk Factors" and in its other
reports filed with the U.S. Securities and Exchange
Commission. Further, at this point, future government funding
to support the development of Valortim®, rBChE and
SparVax® is unlikely. Even if we received such
funding, significant additional non-clinical animal studies, human
clinical trials, and manufacturing development work remain to be
completed for all of our product candidates. In its
August 2014 decision, the
Delaware Court of Chancery awarded
to PharmAthene lump sum expectation damages for the value of
PharmAthene's lost profits for Tecovirimat. On January 15, 2015, the Delaware Court of Chancery issued its Final
Order and Judgment, but its determination of the final amount of
the award, along with the decision itself, will remain subject to
appeal by SIGA to the Delaware Supreme Court. As a result,
the decision could be reversed, remanded or otherwise changed.
There can be no assurances if and when PharmAthene will receive any
payments from SIGA as a result of the decision. SIGA has
stated publicly that it does not currently have cash sufficient to
satisfy the potential award. Furthermore, because SIGA has filed
for protection under the federal bankruptcy laws, PharmAthene is
automatically stayed from taking any enforcement action in the
Delaware Court of Chancery. By
agreement of the parties, and with the approval of the Bankruptcy
Court, the automatic stay has been lifted for the sole purpose of
allowing the Delaware Court of
Chancery to enter a money judgment and to allow the parties to
exercise their appellate rights. Our ability to collect a money
judgment from SIGA remains subject to further proceedings in the
Bankruptcy Court.
Copies of PharmAthene's public disclosure filings are available
from its investor relations department and our website under the
investor relations tab at www.PharmAthene.com.
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SOURCE PharmAthene, Inc.