Siga appeals smallpox drug ruling that awarded profits to PharmAthene
Siga agreed to purchase PharmAthene but ended the proposal in 2006, and PharmAthene subsequently filed a suit alleging that Siga breached a contract signed between the two companies over drug profits from ST-246.
On May 31, the Delaware Chancery Court ruled that after Siga makes its first $40 million in net profits from the ST-246 smallpox drug, PharmAthene will receive 50 percent of the net profits from all sales during the next 10 years.
In 2011, Siga received a $433 million contract to supply ST-246 to the U.S. government. The contract with the Biomedical Advanced Research and Development Authority was for the purchase of 1.7 million courses of the developmental anti-smallpox drug, the Corvallis Gazette-Times reports.
"We look forward to the opportunity to show why the Chancery Court's rulings were made in error," Eric A. Rose, the chief executive officer of SIGA, said.
Siga specializes in developing and commercializing therapeutic solutions for lethal pathogens such as dengue, Ebola, Lassa fever and smallpox. The company's headquarters is in New York but it employs approximately 75 people at a Corvallis, Ore.-based laboratory. PharmAthene is based out of Annapolis, Md.