PharmAthlene wins $195 million judgment against SIGA

PharmAthlene said last week that the Delaware Court of Chancery awarded the company approximately $195 million, plus post-judgment interest fees, in its lawsuit against SIGA Technologies.

SIGA was found to have breached its contract with PharmAthlene in failing to negotiate a license agreement in good faith in the development of a smallpox antiviral treatment, Tecovirimate.

The final judgment includes over $113 million in damages and lost profits and over $81 million in court fees for attorneys and expert witnesses. Post-judgment interest has been placed at $30,663 per day until the judgment is paid in full.

SIGA has filed for federal bankruptcy protection pending a possible appeal to the Delaware Supreme Court, so PharmAthlene's ability to collect any payments on the judgment has been stayed.

In August, the Delaware Court of Chancery awarded PharmAthlene a lump-sum judgment of the lost-profits value on the antiviral treatment for smallpox that was developed by SIGA under contract. Both companies wanted to develop the antiviral treatment. The Chancery Court's opinion, released after arguments were heard, said PharmAthlene issued a bridge loan so that development could continue and the antiviral reached milestones in development that increased its worth. SIGA proposed terms that were not closely related to the terms that had been agreed upon previously.