Siga, U.S. Department of Health and Human Services infectious news
Siga filed for Chapter 11 bankruptcy U.S. Bankruptcy Court for the Southern District of New York and said the court granted "first-day" motions, which Siga said will assure that the company's operations will continue throughout the proceedings. In August, the Delaware Court of Chancery court ordered Siga to pay expectation damages in a lump sum to PharmAthene Inc. (NYSE-M:PIP, Annapolis, Md.) based on U.S. government purchases of Siga's smallpox antiviral Tecovirimat ( ST-246) from 2006. While the amount of the lump sum is yet to be determined, Siga said it is likely to be substantial and will jeopardize Siga's viability and ability to produce and deliver Tecovirimat under its contract with HHS's Biomedical Advanced Research and Development Authority (BARDA). Siga said the Chapter 11 case will prevent PharmAthene from taking enforcement action and will permit Siga to appeal the ruling. The total award will be established after the Delaware Court of Chancery considers certain calculations from experts and input from each company. (see BioCentury, Sept. 1). ...