PharmAthene to be compensated for loss of profits over SIGA's smallpox antiviral drug

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.