Siga Technologies loses smallpox drug profit suit

Siga Technologies Inc. was recently unable to persuade a Delaware Chancery Court judge to reconsider an award of 50 percent of the profit from a smallpox drug to PharmAthene Inc.
On Friday, Judge Donald Parsons affirmed an earlier decision that Siga should share possible proceeds of more than $400 million from ST-246, Bloomberg reports.
“The standard applicable to a motion for reargument is well-settled (and) the moving party bears a heavy burden,” Parsons wrote in a 19 page opinion, according to Bloomberg. “Motions for reargument must be denied when a party merely restates its prior arguments.”
Siga alleged in a court filing that Parsons "misapprehended both the law and the facts" when he awarded a share of ST-246's profit to PharmAthene. Parsons said earlier that Siga had breached its obligation of good faith negotiation on the antiviral drug designed to be used in case of a biological attack.
According to Siga, ST-246 works by blocking the ability of the smallpox virus to spread to other cells, preventing disease symptoms in smallpox animal models. Experiments suggest that the drug may function without compromising acquisition of protective immunity. Clinical studies with healthy human volunteers have shown that ST-246 may be administered without serious adverse effects.
The U.S. Food and Drug Administration has designated the drug for fast-track status, making a path for an expedited FDA review and anticipated regulatory approval.