PharmAthene (PIP) Awaits Court Ruling in Delaware
Tweet
Share
E-mailGet Alerts PIP Hot Sheet
Join SI Premium – FREE
PharmAthene, Inc. (NYSE: PIP) announced that the Delaware Supreme Court heard oral arguments today related to both parties' appeal in the Company's on-going litigation against SIGA Technologies. SIGA appealed the final judgment in favor of PharmAthene issued by the Delaware Court of Chancery on May 31, 2012, in which PharmAthene was awarded 50% of the net profits over a period of ten years from all sales of SIGA's smallpox antiviral therapeutic, Arestvyr™ (formerly ST-246®) and related products, after SIGA receives the first $40 million in net profits, as well as a portion of the Company's attorney's fees and other costs. In response to SIGA's appeal, PharmAthene cross-appealed, challenging other aspects of the trial court's ruling.
"We are pleased to have concluded oral arguments before the Delaware Supreme Court, which represents the final stage before a ruling from the Delaware Supreme Court," commented Eric I. Richman, President and Chief Executive Officer.
Under the Chancery's Court's May 31, 2012 final ruling, once SIGA earns $40 million in "net profits," PharmAthene shall be paid 50% of all net profits for a period from the date of entry of the Court's final order until ten years from "first commercial sale." SIGA recently reaffirmed guidance that it will begin sales to the U.S. government in the first quarter of 2013. According to the ruling, the first commercial sale shall be deemed to have occurred following initial delivery of, and payment for, the product. The Court also awarded PharmAthene $2.4 million to cover a portion of its legal fees and expert witness and other costs, along with interest at the legal rate from the date of the final order until payment is made.
In 2011, the Biomedical Advanced Research and Development Authority (BARDA) awarded SIGA a base contract for the initial procurement of 1.7 million treatment courses of Arestvyr™. The five-year base contract award is valued at $433 million, of which approximately $412.5 million is for purchase of the product.
A copy of the Court's final judgment in the case, as well as the initial opinion, is available on the Company's website at http://www.pharmathene.com/ under the "Investor Relations" tab.
"We are pleased to have concluded oral arguments before the Delaware Supreme Court, which represents the final stage before a ruling from the Delaware Supreme Court," commented Eric I. Richman, President and Chief Executive Officer.
Under the Chancery's Court's May 31, 2012 final ruling, once SIGA earns $40 million in "net profits," PharmAthene shall be paid 50% of all net profits for a period from the date of entry of the Court's final order until ten years from "first commercial sale." SIGA recently reaffirmed guidance that it will begin sales to the U.S. government in the first quarter of 2013. According to the ruling, the first commercial sale shall be deemed to have occurred following initial delivery of, and payment for, the product. The Court also awarded PharmAthene $2.4 million to cover a portion of its legal fees and expert witness and other costs, along with interest at the legal rate from the date of the final order until payment is made.
In 2011, the Biomedical Advanced Research and Development Authority (BARDA) awarded SIGA a base contract for the initial procurement of 1.7 million treatment courses of Arestvyr™. The five-year base contract award is valued at $433 million, of which approximately $412.5 million is for purchase of the product.
A copy of the Court's final judgment in the case, as well as the initial opinion, is available on the Company's website at http://www.pharmathene.com/ under the "Investor Relations" tab.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UBS faces new lawsuit by Appaloosa over Credit Suisse $17 billion bond wipeout
- Atlassian (TEAM) comes ahead of Street estimates in Q1 but shares tumble
- Central Securities (CET) Releases Report to Stockholders
Create E-mail Alert Related Categories
LitigationSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
