Delaware Court of Chancery Orders SIGA To Pay PharmAthene Lump Sum Expectation Damages Court Also Awards Prejudgment Interest and Reasonable Attorneys' and Expert Witness Fees
ANNAPOLIS, Md., Aug. 10, 2014 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT: PIP) announced today that on August 8, 2014, the Delaware Court of Chancery issued a Memorandum Opinion and awarded to PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA Technologies, Inc.'s smallpox antiviral, Tecovirimat (formerly known as ST-246 and Arestvyr™). In addition, the Court ordered SIGA to pay prejudgment interest and varying percentages of PharmAthene's reasonable attorneys' 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," said Eric I. Richman, President and Chief Executive Officer. "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."
A copy of the Court's opinions including the present decision and order in the case are available on the Company's website at www.pharmathene.com under the "Investor Relations" tab.
PharmAthene is engaged in the development and commercialization of next generation medical countermeasures against biological and chemical threats. PharmAthene's current biodefense portfolio includes the following product candidates:
- SparVax® - a next generation recombinant protective antigen (rPA) anthrax vaccine
- rBChE bioscavenger - a medical countermeasure for nerve agent poisoning by organophosphorous compounds, including nerve gases and pesticides
- Valortim® - a fully human monoclonal antibody for the prevention and treatment of anthrax infection
For more information about PharmAthene, please visit www.PharmAthene.com.
Statement on Cautionary Factors
Except for the historical information presented herein, matters discussed may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements preceded by, followed by, or that include the words "potential"; "believe"; "anticipate"; "intend"; "plan"; "expect"; "estimate"; "could"; "may"; "should"; "will"; "project"; "potential"; or similar statements are forward-looking statements. PharmAthene disclaims any intent or obligation to update these forward-looking statements other than as required by law. Risks and uncertainties include risk associated with our interest in Tecovirimat, the reliability of the results of the studies relating to human safety and possible adverse effects resulting from the administration of the Company's product candidates, unexpected funding delays and/or reductions or elimination of U.S. government funding for one or more of the Company's development programs, the award of government contracts to our competitors, unforeseen safety issues, challenges related to the development, scale-up, technology transfer, and/or process validation of manufacturing processes for our product candidates, unexpected determinations that these product candidates prove not to be effective and/or capable of being marketed as products, as well as risks detailed from time to time in PharmAthene's Forms 10-K and 10-Q under the caption "Risk Factors" and in its other reports filed with the U.S. Securities and Exchange Commission (the "SEC"). Further, significant additional non-clinical animal studies, human clinical trials, and manufacturing development work remain to be completed for all of our product candidates. The decision described above does not specify an amount of damages, and such amount will be subject to argument between the parties. It remains subject to further appeal and as a result could be reversed, remanded or otherwise changed. There can be no assurances if and when PharmAthene will receive any payments from SIGA as a result of the decision. Furthermore, SIGA may not currently have cash sufficient to satisfy the potential award and PharmAthene cannot predict how or whether SIGA will be capable of making any payments provided for in a final judgment. Finally, the amount of the award remains subject to further calculation and approval by the court and there may be further proceedings before the final amount is approved by the Court, which will also remain subject to appeal. Copies of PharmAthene's public disclosure filings are available from its investor relations department and our website under the investor relations tab at www.PharmAthene.com.
SOURCE PharmAthene, Inc.