ANNAPOLIS, Md., Dec. 24, 2015 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT: PIP) announced today that the Delaware Supreme Court affirmed the Delaware Court of Chancery's decision to award PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA's smallpox antiviral, Tecovirimat. The Delaware Court of Chancery awarded PharmAthene $113 million in expectation damages plus interest and other costs, which if calculated based on the original decision (and including post-judgment interest) would provide for an estimated total of approximately $205 million. PharmAthene's ability to collect a monetary judgment, including post-petition interest, from SIGA remains subject to further proceedings in the Federal Bankruptcy Court. SIGA has filed a reorganization plan with the Court that provides for among other things, the process by which PharmAthene's judgment may be satisfied, but that plan has not been approved by the Bankruptcy Court and remains subject to change, withdrawal or rejection by the Court. A copy of the Delaware Supreme Court decision is available at: http://courts.delaware.gov/opinions/download.aspx?ID=234170.
A copy of the SIGA reorganization plan filed with the bankruptcy court is available at: https://cases.primeclerk.com/siga/Home-DownloadPDF?id1=MjQwOTg4&id2=0.
PharmAthene is a biodefense company engaged in the development of next generation medical countermeasures against biological and chemical threats. The Company's development portfolio includes two next generation Anthrax vaccines that are intended to improve protection while having favorable dosage and storage requirements compared other Anthrax vaccines.
On January 15, 2015, the Delaware Court of Chancery issued its Final Order and Judgment in PharmAthene's litigation against SIGA. The Court of Chancery awarded to PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA's smallpox antiviral, Tecovirimat, also known as ST-246® (formerly referred to as "Arestvyr™" and referred to by SIGA in its recent SEC filings as "Tecovirimat"). In addition, the Court of Chancery ordered SIGA to pay pre-judgment interest and varying percentages of PharmAthene's reasonable attorneys' and expert witness fees.
Forward-Looking Statement Disclaimer
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 risks associated with the judgment relating to Tecovirimat, also known as ST-246® (formerly referred to as "Arestvyr™" and referred to by SIGA in its recent SEC filings as "Tecovirimat") (including the risk that we will not be able to collect any amounts related thereto); and other 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 final award may be subject to further proceedings before the Delaware Courts. There can be no assurances if and when PharmAthene will receive any payments from SIGA as a result of the decision. SIGA has stated publicly that it does not currently have cash sufficient to satisfy the award. It is also uncertain whether SIGA will have such cash in the future. PharmAthene's ability to collect the Judgment depends upon a number of factors, including SIGA's financial and operational success, which is subject to a number of significant risks and uncertainties (certain of which are outlined in SIGA's filings with the SEC), as to which we have limited knowledge and which we have no ability to control, mitigate or fully evaluate. Because SIGA has filed for protection under the federal bankruptcy laws, PharmAthene is automatically stayed from taking any enforcement action in the Delaware Court of Chancery. By agreement of the parties, and with the approval of the Bankruptcy Court, the automatic stay has been lifted for the sole purpose of allowing the Delaware Court of Chancery to enter a money judgment and to allow the parties to exercise their appellate rights. On December 15, 2015, SIGA filed with the U.S. Bankruptcy Court for the Southern District of New York a reorganization plan that sets out the terms and conditions under which SIGA will seek to exit from bankruptcy. The plan filed was negotiated between SIGA and the Statutory Creditor's Committee of which PharmAthene is a member. The plan is subject to approval by the bankruptcy court, on a timeline to be determined. No assurance can be given that the U.S. Bankruptcy Court for the Southern District of New York will approve the reorganization plan or that as a result thereof, we will receive any award of money damages from SIGA or otherwise receive any benefit therefrom.
Copies of PharmAthene's public disclosure filings are available on our website under the investor relations tab at www.PharmAthene.com.
SOURCE PharmAthene, Inc.