PharmAthene skyrockets on ST-246 news

PharmAthene Inc. (NYSE-A:PIP) gained $1.21 (61%) to $3.19 on 22.7 million shares on Friday after news emerged that the company could be eligible for a license to a smallpox antiviral from once-merger candidate Siga Technologies Inc. (NASDAQ:SIGA). Siga said on Wednesday that HHS intends to award a contract for the ST-246 antiviral that could be worth up to $2.8 billion. PharmAthene claims in an ongoing suit in the Delaware Court of Chancery that it has a right for an exclusive license to ST-246 as a result of Siga's termination of a 2006 merger agreement with PharmAthene. A trial date is set for Jan. 3, 2011. Neither company could be reached for comment. ST-246 is in Phase II testing. ...