PharmAthene, Inc. announced this week that the Delaware Court of Chancery has entered its Final Order and Judgment in the company’s litigation against SIGA Technologies, Inc.
The dispute dates back to a merger agreement between the two companies. When SIGA withdrew from the agreement, PharmAthene sued over rights to the anti-smallpox drug, ST-246, a countermeasure funded heavily by the Biomedical Advanced Research and Development Authority (BARDA).
The Court’s judgment against SIGA totaled $194,649,041.74, including $113,116,985.00 in lump sum expectation damages for the value of PharmAthene’s lost profits for SIGA’s smallpox antiviral, Tecovirimat, and $81,532,056.74 in pre-judgment interest and attorneys’ and expert witness fees.
In addition, SIGA will be required to pay post-judgment interest of $30,663.89 per day, beginning today.
The court’s determination, along with the decision itself, will remain subject to appeal by SIGA to the Delaware Supreme Court. 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. PharmAthene’s ability to collect a money judgment from SIGA remains subject to further proceedings in the Bankruptcy Court.
