Full Press Release Details
SIGA Reports Financial Results for Three and Nine Months Ended September 30, 2020
- Third Quarter includes
Delivery of Approximately 134,000 Courses of TPOXX to U.S. Government -
- In October, the Public
Health Agency of Canada Announced its Intent to Purchase up to 33,300 Courses of Oral TPOXX -
- Corporate Update Conference
Call Today at 4:30 PM ET -
November 5, 2020, 4:05 pm ET
NEW YORK -- SIGA Technologies, Inc. (SIGA) (NASDAQ: SIGA), a commercial-stage pharmaceutical company focused on the health security market, today reported
financial results for the three and nine months ended September 30, 2020.
"SIGA's third quarter was highlighted by the delivery of approximately 134,000 courses of oral TPOXX to the strategic national stockpile (SNS)," said Phil Gomez, CEO
of SIGA. "With deliveries made in the second quarter, SIGA has delivered approximately 251,000 courses of oral TPOXX to the SNS over the last two quarters, generating revenue from these deliveries of approximately $78 million. This activity in
the U.S. is being complemented by a growing international business, with the most recent activity being the announcement by the Public Health Agency of Canada of its intent to purchase up to 33,300 courses of oral TPOXX over a five-year time
Summary Financial Results
($ in millions, except per share amounts)
Three Months Ended September 30, 2020 in comparison to Three Months Ended September 30, 2019
| Three Months Ended September 30, 2020 | Three Months Ended September 30, 2019 | |||||||
| Total Revenues | $ | 44.3 | $ | 8.1 | ||||
| Operating Income (1) | $ | 32.9 | $ | 0.7 | ||||
| Income (Loss) before Income Taxes (1) | $ | 31.6 | $ | (1.6 | ) | |||
| Net Income (Loss) | $ | 24.2 | $ | (1.2 | ) | |||
| Diluted Income (Loss) per Share | $ | 0.31 | $ | (0.03 | ) |
Nine Months Ended September 30, 2020 in comparison to Nine Months Ended September 30, 2019
| Nine Months Ended September 30, 2020 | Nine Months Ended September 30, 2019 | |||||||
| Total Revenues | $ | 87.2 | $ | 22.5 | ||||
| Operating Income (1) | $ | 57.7 | $ | 1.1 | ||||
| Income (Loss) before Income Taxes (1) | $ | 47.3 | $ | (3.7 | ) | |||
| Net Income (Loss) | $ | 36.2 | $ | (2.7 | ) | |||
| Diluted Income (Loss) per Share | $ | 0.45 | $ | (0.09 | ) |
(1) Operating Income excludes, and Income (Loss) before Income Taxes includes, costs in connection with the retirement of the Company's
term loan, interest expense, interest income and adjustments to the fair value of the Company's outstanding warrant. Both line items exclude the impact of income taxes.
Recent Key Activities:
Share Repurchase Activity
During the third quarter of 2020, SIGA repurchased approximately 0.9 million shares of its common stock, for approximately $5.6 million. As of September 30, the
Company has cumulatively repurchased this year approximately 3.7 million shares of its common stock for approximately $21.8 million.
Product Delivery Update in Connection with the 19C BARDA Contract
Pursuant to options already exercised under the 19C BARDA Contract, SIGA delivered approximately 251,000 courses of
oral TPOXX to the SNS over the first nine months of 2020. In October, an additional approximate 112,000 courses of oral TPOXX were delivered to the SNS. As such, total deliveries of oral TPOXX under the 19C BARDA Contract are expected to
total approximately 363,000 courses for the calendar year 2020, resulting in annual revenues of approximately $113 million. The 19C BARDA Contract has up to an additional $414 million
of procurement-related options remaining for potential future exercise by BARDA. Amounts noted in this paragraph do not include any actual or potential product deliveries in connection
with international contracts.
The COVID-19 pandemic has caused significant societal and economic disruption. Such disruption, and the associated risks and costs, are
expected to continue for an indeterminate period of time. Given the uncertain future course of the COVID-19 pandemic, and the uncertain scale and scope of its future impact, the Company is continually reviewing business and financial risks
related to the pandemic and is continually seeking coordination with its government partners with respect to the performance of current and future government contracts. Additionally, the Company is continually coordinating with service providers
and vendors, in particular contract manufacturing organizations that constitute our supply chain, to review actions and risks caused by the COVID-19 pandemic.
The COVID-19 pandemic has not adversely affected the liquidity position of the Company, nor is it currently expected to have a material adverse effect on the
financial condition or annual financial results of the Company, although the Company cannot provide assurances as to the ultimate impact of the pandemic upon the macro environment or the Company's industry.
Conference Call and Webcast
SIGA will host a conference call and webcast to provide a business update today, Thursday, November 5, 2020, at 4:30 P.M. ET.
Participants may access the call by dialing 877-407-6184 for domestic callers or 201-389-0877 for international callers. A live webcast of the call will also be
available on the Company's website at www.siga.com under the 'Events & Presentations' tab in the Investor Relations section, or by clicking
here. Please log in approximately 5-10 minutes prior to the scheduled start time.
A replay of the call will be available for two weeks by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers and using Conference
ID: 13711770. The archived webcast will be available in the Events and Presentations section of the Company's website.
ABOUT SIGA TECHNOLOGIES, INC. and TPOXX
SIGA Technologies, Inc. is a commercial-stage pharmaceutical company focused on the health security market. Health security comprises countermeasures for
biological, chemical, radiological and nuclear attacks (biodefense market), vaccines and therapies for emerging infectious diseases, and health preparedness. Our lead product is TPOXX , also known as tecovirimat and ST-246 , an
orally administered and IV formulation antiviral drug for the treatment of human smallpox disease caused by variola virus. TPOXX is a novel small-molecule drug and the US maintains a stockpile of 1.7 million courses in the Strategic
National Stockpile under Project BioShield. The oral formulation of TPOXX was approved by the FDA for the treatment of smallpox in 2018. The full label is here:
https://dailymed.nlm.nih.gov/dailymed/drugInfo.cfm?setid=fce826ab-4d6a-4139-a2ee-a304a913a253. In September 2018, SIGA signed a contract potentially worth more than $600 million with BARDA for additional procurement and development related to
both oral and intravenous formulations of TPOXX . For more information about SIGA, please visit www.siga.com.
Smallpox is a contagious, disfiguring and often deadly disease that has affected humans for thousands of years. Naturally occurring smallpox was eradicated
worldwide by 1980, the result of an unprecedented global immunization campaign. Samples of smallpox virus have been kept for research purposes. This has led to concerns that smallpox could someday be used as a biological warfare agent. A
vaccine can prevent smallpox, but the risk of the current vaccine's side effects is too high to justify routine vaccination for people at low risk of exposure to the smallpox virus.
FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such
forward-looking statements are subject to various known and unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. More detailed
information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this press release, is set forth in SIGA's filings with the Securities and Exchange Commission,
including SIGA's Annual Report on Form 10-K for the year ended December 31, 2019, and in other documents that SIGA has filed with the SEC. SIGA urges investors and security holders to read those documents free of charge at the SEC's web site at
http://www.sec.gov. Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements are current only as of the date on which such statements were made, and except for our ongoing obligations under the
United States of America federal securities laws, we undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events, or otherwise.
The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official
endorsement should be inferred.
SIGA TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
| September30, 2020 | December31, 2019 | |||||||
| ASSETS | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 78,663,526 | $ | 65,249,072 | ||||
| Restricted cash and cash equivalents, short-term | - | 95,737,862 | ||||||
| Accounts receivable | 40,398,708 | 4,167,996 | ||||||
| Inventory | 10,747,532 | 9,652,855 | ||||||
| Prepaid expenses and other current assets | 1,290,388 | 5,234,000 | ||||||
| Total current assets | 131,100,154 | 180,041,785 | ||||||
| Property, plant and equipment, net | 2,236,668 | 2,618,303 | ||||||
| Deferred tax assets, net | 6,484,111 | 14,151,002 | ||||||
| Goodwill | 898,334 | 898,334 | ||||||
| Other assets | 702,885 | 856,766 | ||||||
| Total assets | $ | 141,422,152 | $ | 198,566,190 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities | ||||||||
| Accounts payable | $ | 1,118,307 | $ | 3,054,032 | ||||
| Accrued expenses and other current liabilities | 15,182,437 | 8,636,911 | ||||||
| Total debt, current | - | 80,044,866 | ||||||
| Total current liabilities | 16,300,744 | 91,735,809 | ||||||
| Warrant liability | 9,026,690 | 6,116,882 | ||||||
| Other liabilities | 3,134,304 | 2,929,743 | ||||||
| Total liabilities | 28,461,738 | 100,782,434 | ||||||
| Commitments and contingencies | ||||||||
| Stockholders' equity | ||||||||
| Common stock ($.0001 par value, 600,000,000 shares authorized, 77,770,284 and 81,269,868, issued and outstanding at September 30, 2020 and December 31, 2019, respectively) | 7,777 | 8,127 | ||||||
| Additional paid-in capital | 221,587,384 | 220,808,037 | ||||||
| Accumulated deficit | (108,634,747 | ) | (123,032,408 | ) | ||||
| Total stockholders' equity | 112,960,414 | 97,783,756 | ||||||
| Total liabilities and stockholders' equity | $ | 141,422,152 | $ | 198,566,190 |
SIGA TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||
| Revenues | ||||||||||||||||
| Product sales and supportive services | $ | 41,810,192 | $ | 3,915,335 | $ | 80,547,651 | $ | 11,057,735 | ||||||||
| Research and development | 2,451,215 | 4,195,989 | 6,682,298 | 11,420,284 | ||||||||||||
| Total revenues | 44,261,407 | 8,111,324 | 87,229,949 | 22,478,019 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Cost of sales and supportive services | 5,559,215 | 737,274 | 10,465,078 | 1,652,641 | ||||||||||||
| Selling, general and administrative | 3,566,258 | 3,196,370 | 10,613,267 | 9,755,165 | ||||||||||||
| Research and development | 2,073,613 | 3,343,521 | 7,933,404 | 9,379,125 | ||||||||||||
| Patent expenses | 164,102 | 173,580 | 520,902 | 543,806 | ||||||||||||
| Total operating expenses | 11,363,188 | 7,450,745 | 29,532,651 | 21,330,737 | ||||||||||||
| Operating income | 32,898,219 | 660,579 | 57,697,298 | 1,147,282 | ||||||||||||
| (Loss) gain from change in fair value of warrant liability | (1,274,156 | ) | 981,923 | (2,909,808 | ) | 4,774,711 | ||||||||||
| Loss on extinguishment of Term Loan | - | - | (4,981,461 | ) | - | |||||||||||
| Interest expense | - | (3,971,952 | ) | (3,016,817 | ) | (11,871,401 | ) | |||||||||
| Other income, net | 24,932 | 759,881 | 469,226 | 2,233,588 | ||||||||||||
| Income (loss) before income taxes | 31,648,995 | (1,569,569 | ) | 47,258,438 | (3,715,820 | ) | ||||||||||
| (Provision) benefit for income taxes | (7,461,038 | ) | 363,742 | (11,077,854 | ) | 977,278 | ||||||||||
| Net and comprehensive income (loss) | $ | 24,187,957 | $ | (1,205,827 | ) | $ | 36,180,584 | $ | (2,738,542 | ) | ||||||
| Basic income (loss) per share | $ | 0.31 | $ | (0.01 | ) | $ | 0.45 | $ | (0.03 | ) | ||||||
| Diluted income (loss) per share | $ | 0.31 | $ | (0.03 | ) | $ | 0.45 | $ | (0.09 | ) | ||||||
| Weighted average shares outstanding: basic | 78,080,461 | 81,064,927 | 79,880,493 | 80,988,813 | ||||||||||||
| Weighted average shares outstanding: diluted | 78,168,070 | 82,181,858 | 80,051,778 | 82,148,333 |