SIGA Reports Financial Results for Three and Nine Months Ended September 30, 2020
11/05/2020 - 04:05 PM
- Third Quarter includes Delivery of Approximately 134,000 Courses of TPOXX® to U.S. Government –
- In October, the Public Health Agency of Canada Announced its Intent to Purchase up to 33,300 Courses of Oral TPOXX® –
- Corporate Update Conference Call Today at 4:30 PM ET -
NEW YORK, Nov. 05, 2020 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (SIGA) (NASDAQ: SIGA), a commercial-stage pharmaceutical company focused on the health security market, today reported financial results for the three and nine months ended September 30, 2020.
“SIGA’s third quarter was highlighted by the delivery of approximately 134,000 courses of oral TPOXX® to the strategic national stockpile (SNS),” said Phil Gomez, CEO of SIGA. “With deliveries made in the second quarter, SIGA has delivered approximately 251,000 courses of oral TPOXX® to the SNS over the last two quarters, generating revenue from these deliveries of approximately $78 million . This activity in the U.S. is being complemented by a growing international business, with the most recent activity being the announcement by the Public Health Agency of Canada of its intent to purchase up to 33,300 courses of oral TPOXX® over a five-year time period.”
Summary Financial Results
Three Months Ended September 30, 2020 in comparison to Three Months Ended September 30, 2019
2020 2019 Total Revenues $44.3 $8.1
Nine Months Ended September 30, 2020 in comparison to Nine Months Ended September 30, 2019
2020 2019 Total Revenues $87.2 $22.5
(1) Operating Income excludes, and Income (Loss) before Income Taxes includes, costs in connection with the retirement of the Company’s term loan, interest expense, interest income and adjustments to the fair value of the Company’s outstanding warrant. Both line items exclude the impact of income taxes.
Recent Key Activities:
In the third quarter of 2020, the Company delivered approximately 134,000 courses of oral TPOXX® to the SNS. SIGA has recognized $41.4 million of revenue in connection with this delivery, of which $4.1 million relates to amounts previously received in connection with raw material procurement and which were recorded as deferred revenue. In October 2020, the Company delivered approximately 112,000 courses of oral TPOXX® to the SNS. This delivery will be reflected in the financial results for the fourth quarter 2020. In October 2020, the Public Health Agency of Canada (PHAC) issued an advanced contract award notice (ACAN), indicating that the PHAC intends to purchase up to 33,300 courses of oral TPOXX® within five years as specified in the ACAN, with 3,700 courses to be delivered by March 31, 2021; a cumulative total of 18,500 courses to be delivered by March 31, 2023; and an additional 14,800 courses to be delivered after March 31, 2023, subject to option exercise. This ACAN follows, but is separate and incremental to, the issuance in April 2020 of a contract by the Canadian Department of National Defence (CDND) for the delivery of up to 15,325 courses of oral TPOXX®. Share Repurchase Activity
During the third quarter of 2020, SIGA repurchased approximately 0.9 million shares of its common stock, for approximately $5.6 million . As of September 30, the Company has cumulatively repurchased this year approximately 3.7 million shares of its common stock for approximately $21.8 million .
Product Delivery Update in Connection with the 19C BARDA Contract
Pursuant to options already exercised under the 19C BARDA Contract, SIGA delivered approximately 251,000 courses of oral TPOXX® to the SNS over the first nine months of 2020. In October, an additional approximate 112,000 courses of oral TPOXX® were delivered to the SNS. As such, total deliveries of oral TPOXX® under the 19C BARDA Contract are expected to total approximately 363,000 courses for the calendar year 2020, resulting in annual revenues of approximately $113 million . The 19C BARDA Contract has up to an additional $414 million of procurement-related options remaining for potential future exercise by BARDA. Amounts noted in this paragraph do not include any actual or potential product deliveries in connection with international contracts.
COVID-19 Pandemic
The COVID-19 pandemic has caused significant societal and economic disruption. Such disruption, and the associated risks and costs, are expected to continue for an indeterminate period of time. Given the uncertain future course of the COVID-19 pandemic, and the uncertain scale and scope of its future impact, the Company is continually reviewing business and financial risks related to the pandemic and is continually seeking coordination with its government partners with respect to the performance of current and future government contracts. Additionally, the Company is continually coordinating with service providers and vendors, in particular contract manufacturing organizations that constitute our supply chain, to review actions and risks caused by the COVID-19 pandemic.
The COVID-19 pandemic has not adversely affected the liquidity position of the Company, nor is it currently expected to have a material adverse effect on the financial condition or annual financial results of the Company, although the Company cannot provide assurances as to the ultimate impact of the pandemic upon the macro environment or the Company’s industry.
Conference Call and Webcast
SIGA will host a conference call and webcast to provide a business update today, Thursday, November 5, 2020, at 4:30 P.M. ET.
Participants may access the call by dialing 877-407-6184 for domestic callers or 201-389-0877 for international callers. A live webcast of the call will also be available on the Company's website at www.siga.com under the 'Events & Presentations' tab in the Investor Relations section, or by clicking here . Please log in approximately 5-10 minutes prior to the scheduled start time.
A replay of the call will be available for two weeks by dialing 877-660-6853 for domestic callers or 201-612-7415 for international callers and using Conference ID: 13711770. The archived webcast will be available in the Events and Presentations section of the Company's website .
ABOUT SIGA TECHNOLOGIES, INC. and TPOXX®
SIGA Technologies, Inc. is a commercial-stage pharmaceutical company focused on the health security market. Health security comprises countermeasures for biological, chemical, radiological and nuclear attacks (biodefense market), vaccines and therapies for emerging infectious diseases, and health preparedness. Our lead product is TPOXX® , also known as tecovirimat and ST-246®, an orally administered and IV formulation antiviral drug for the treatment of human smallpox disease caused by variola virus. TPOXX® is a novel small-molecule drug and the US maintains a stockpile of 1.7 million courses in the Strategic National Stockpile under Project BioShield. The oral formulation of TPOXX® was approved by the FDA for the treatment of smallpox in 2018. The full label is here: https://dailymed.nlm.nih.gov/dailymed/drugInfo.cfm?setid=fce826ab-4d6a-4139-a2ee-a304a913a253 . In September 2018, SIGA signed a contract potentially worth more than $600 million with BARDA for additional procurement and development related to both oral and intravenous formulations of TPOXX® . For more information about SIGA, please visit www.siga.com .
About Smallpox1
Smallpox is a contagious, disfiguring and often deadly disease that has affected humans for thousands of years. Naturally occurring smallpox was eradicated worldwide by 1980, the result of an unprecedented global immunization campaign. Samples of smallpox virus have been kept for research purposes. This has led to concerns that smallpox could someday be used as a biological warfare agent. A vaccine can prevent smallpox, but the risk of the current vaccine's side effects is too high to justify routine vaccination for people at low risk of exposure to the smallpox virus.
FORWARD-LOOKING STATEMENTS
This press release contains certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Such forward-looking statements are subject to various known and unknown risks and uncertainties, and SIGA cautions you that any forward-looking information provided by or on behalf of SIGA is not a guarantee of future performance. More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this press release, is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K for the year ended December 31, 2019, and in other documents that SIGA has filed with the SEC. SIGA urges investors and security holders to read those documents free of charge at the SEC's web site at http://www.sec.gov . Interested parties may also obtain those documents free of charge from SIGA. Forward-looking statements are current only as of the date on which such statements were made, and except for our ongoing obligations under the United States of America federal securities laws, we undertake no obligation to update publicly any forward-looking statements whether as a result of new information, future events, or otherwise.
The information contained in this press release does not necessarily reflect the position or the policy of the Government and no official endorsement should be inferred.
Contacts:
Investors david.carey@finnpartners.com
Media stephanie.seiler@finnpartners.com
1 http://www.mayoclinic.org/diseases-conditions/smallpox/basics/definition/con-20022769
SIGA TECHNOLOGIES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
September 30, 2020 December 31, 2019 ASSETS Current assets Cash and cash equivalents $ 78,663,526 $ 65,249,072 Restricted cash and cash equivalents, short-term - 95,737,862 Accounts receivable 40,398,708 4,167,996 Inventory 10,747,532 9,652,855 Prepaid expenses and other current assets 1,290,388 5,234,000 Total current assets 131,100,154 180,041,785 Property, plant and equipment, net 2,236,668 2,618,303 Deferred tax assets, net 6,484,111 14,151,002 Goodwill 898,334 898,334 Other assets 702,885 856,766 Total assets $ 141,422,152 $ 198,566,190 LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities Accounts payable $ 1,118,307 $ 3,054,032 Accrued expenses and other current liabilities 15,182,437 8,636,911 Total debt, current - 80,044,866 Total current liabilities 16,300,744 91,735,809 Warrant liability 9,026,690 6,116,882 Other liabilities 3,134,304 2,929,743 Total liabilities 28,461,738 100,782,434 Commitments and contingencies Stockholders’ equity Common stock ($.0001 par value, 600,000,000 shares authorized, 77,770,284 and 81,269,868, issued and outstanding at September 30, 2020 and December 31, 2019, respectively) 7,777 8,127 Additional paid-in capital 221,587,384 220,808,037 Accumulated deficit (108,634,747 ) (123,032,408 ) Total stockholders’ equity 112,960,414 97,783,756 Total liabilities and stockholders’ equity $ 141,422,152 $ 198,566,190
SIGA TECHNOLOGIES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (UNAUDITED)
Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenues Product sales and supportive services $ 41,810,192 $ 3,915,335 $ 80,547,651 $ 11,057,735 Research and development 2,451,215 4,195,989 6,682,298 11,420,284 Total revenues 44,261,407 8,111,324 87,229,949 22,478,019 Operating expenses Cost of sales and supportive services 5,559,215 737,274 10,465,078 1,652,641 Selling, general and administrative 3,566,258 3,196,370 10,613,267 9,755,165 Research and development 2,073,613 3,343,521 7,933,404 9,379,125 Patent expenses 164,102 173,580 520,902 543,806 Total operating expenses 11,363,188 7,450,745 29,532,651 21,330,737 Operating income 32,898,219 660,579 57,697,298 1,147,282 (Loss) gain from change in fair value of warrant liability (1,274,156 ) 981,923 (2,909,808 ) 4,774,711 Loss on extinguishment of Term Loan - - (4,981,461 ) - Interest expense - (3,971,952 ) (3,016,817 ) (11,871,401 ) Other income, net 24,932 759,881 469,226 2,233,588 Income (loss) before income taxes 31,648,995 (1,569,569 ) 47,258,438 (3,715,820 ) (Provision) benefit for income taxes (7,461,038 ) 363,742 (11,077,854 ) 977,278 Net and comprehensive income (loss) $ 24,187,957 $ (1,205,827 ) $ 36,180,584 $ (2,738,542 ) Basic income (loss) per share $ 0.31 $ (0.01 ) $ 0.45 $ (0.03 ) Diluted income (loss) per share $ 0.31 $ (0.03 ) $ 0.45 $ (0.09 ) Weighted average shares outstanding: basic 78,080,461 81,064,927 79,880,493 80,988,813 Weighted average shares outstanding: diluted 78,168,070 82,181,858 80,051,778 82,148,333
