Delaware court orders SIGA to pay damages to PharmAthene
The court issued a memorandum opinion that awarded damages for the value of PharmAthene's lost profits for Tecovirimat, a smallpox antiviral formerly known as ST-246 and Arestvyr. The court also ordered SIGA to pay prejudgment interest and varying percentages of PharmAthene's attorney and expert witness fees.
"We are extremely pleased by the Chancery Court's ruling to award PharmAthene lump sum expectancy damages that it suffered due to SIGA's breach of contract," Eric Richman, the president and CEO of PharmAthene, said. "We look forward to working with our damages expert to calculate the lump sum damage amounts in accordance with the court's decision and its instructions in the accompanying order."
The case goes back to 2006 when SIGA signed a bridge loan and merger agreement that called for PharmAthene to provide technical and financial assistance. The companies agreed that if a merger was not completed, they would negotiate in good faith to execute a definitive license agreement. After SIGA received a grant from the National Institutes of Health, SIGA allegedly proposed economic terms that PharmAthene considered a violation of its obligation to negotiate in good faith, Seeking Alpha reports.
PharmAthene develops next-generation countermeasures against chemical and biological threats.