Market Overview

SIGA Technologies Surges 31% on Board Member's Comments

Shares of SIGA Technologies (NASDAQ: SIGA) have surged more than 30% on Friday after board member Fran Townsend assuaged shareholder concerns regarding investigations from two Congressional committees investigating a large government contract the company received from the government. In May, SIGA was awarded a contract valued at $433 million to supply the U.S. Department of Health and Human Services of its smallpox drug.

The committees began investigating the contract in June after allegations surfaced that financier Ron Perelman's political connections may have influenced the decision. Perleman is a SIGA shareholder. In an interview with CNN, Townsend said that the contract was given through a competitive process and that rival Chimerix did not meet the requirements to secure the lucrative contract.

SIGA shares were trading up 31% at $2.42 at last check.

Posted-In: Intraday Update Movers

 

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