Biodefense firm, PharmAthene, Inc. (NYSE Amex: PIP) announced that the Delaware Court of Chancery has denied competitor SIGA Technologies an appeal to the Court's decision on September 22, 2011.
With that ruling PharmAthene will receive 50 percent of net profits from the sale of ST-246, a smallpox antiviral drug being sold by SIGA. PharmAthene will receive the profits for 10 years after the first $40 million is accrued by SIGA. In addition, SIGA will pay one-third of attorney fees and witness costs.
"We are pleased by the Court's decision to uphold its original ruling in favor of PharmAthene," commented Eric I. Richman, President and Chief Executive Officer. "The Court's decision to award 50% of the net profits of ST-246 to PharmAthene represents a tremendous victory for our Company," continued Mr. Richman. "The significant economic interest and near-term revenue we expect to recognize following this decision will enable us to accelerate our path to profitability and generate immediate value for investors. Coupled with potential future revenue from our current programs, which continue to make exciting progress, PharmAthene is positioned to become one of the nation's premier biodefense innovators."