Delaware Supreme Court hears oral arguments in PharmAthene/SIGA case
Following the conclusion of oral arguments heard in the case between the two pharmaceutical giants, the court is expected to make a final ruling by the second quarter of this year. The court previously ruled in the favor of PharmAthene on four separate occasions, Seeking Alpha reports.
The case began 2006 and focuses on the termination of a merger agreement between PharmAthene and SIGA and a lucrative government medical countermeasure contract.
The U.S. government previously signed a $435 million agreement with SIGA to purchase ST-246, also known as Arestvyr, through the Biomedical Advanced Research and Development Authority. In 2006, PharmAthene filed a complaint against SIGA alleging that PharmAthene had the right to license, exclusively develop and market Arestvyr, pursuant to a merger agreement that was terminated that year.
In May, the court issued a final judgment to award PharmAthene the right to receive 50 percent of all ST-246 net profits for 10 years once SIGA earns $40 million in net profits. SIGA appealed the verdict and PharmAthene cross-appealed. The latest ruling should come 60 to 90 days after the conclusion of the oral arguments.
PharmAthene develops biological and chemical weapon countermeasures, including SparVax rPA anthrax vaccine, Valortim anthrax anti-toxin and Bioscavenger for nerve agents. SparVax is currently under a U.S. Food and Drug Administration clinical hold, Seeking Alpha reports.