SIGA Technologies Reports Financial Results for the Third Quarter of 2012
NEW YORK, Nov. 5, 2012 (GLOBE NEWSWIRE) -- SIGA Technologies, Inc. (Nasdaq: SIGA), a company specializing in the development of pharmaceutical agents to fight pathogens capable of use as bioweapons, today reported its financial results for the three and nine months ended September 30, 2012.
Revenue for the three months ended September 30, 2012 was $2.3 million, compared to $3.6 million in the third quarter of 2011, and the operating loss for the quarter was $5.4 million, compared to $6.0 million for the comparable period last year. Net loss per share, which included a $2.5 million income tax benefit, was $0.06 for the three months ended September 30, 2012. In comparison, earnings per diluted share, which included a $1.5 million income tax benefit, was breakeven for the three months ended September 30, 2011. Per share calculations include non-operational items such as adjustments to the fair value of warrants.
Revenue for the nine months ended September 30, 2012 was $6.5 million, compared to $7.8 million of revenue recognized for the corresponding 2011 period. The operating loss for the period was $17.3 million; in comparison, there was an operating loss of $23.6 million in the first nine months of 2011. Net loss per share, which included a $6.1 million income tax benefit, was $0.22 in the first nine months of 2012, compared to earnings per diluted share of $0.20 in 2011. Earnings per diluted share for the first nine months of 2011 included a $34.4 million income tax benefit that was primarily related to a partial release of a valuation allowance.
In addition to reporting financial results for the quarter and nine months ended September 30, 2012, SIGA is also reporting that in October 2012, the Company received FDA concurrence on its product labeling strategy and in accordance with the BARDA Contract, is entitled to a milestone payment of $12.3 million. The Company has invoiced BARDA for the $12.3 million milestone and receipt is expected during the fourth quarter.
Key Financial Results for Third Quarter and Nine Months 2012
In this quarter, revenue from research and development ("R&D") grants and contracts was $2.3 million, compared to $3.6 million for the third quarter 2011. The decrease of $1.3 million is primarily due to the net impact of: a $645,000 decrease in revenue from our federal grants and contracts supporting the development of our ST-246® program, a $478,000 decrease in revenue generated by a grant for research relating to the development of a dengue fever antiviral, and a $301,000 decrease in revenue related to the conclusion in late 2011 of a federal grant supporting development of a broad-spectrum antiviral.
For the first nine months of 2012 and 2011, revenue was $6.5 million and $7.8 million, respectively, a decrease of $1.3 million. Revenues decreased mainly due to $1.1 million of lower grant usage by the ST-246 program and a $1.2 million decrease in revenue due to the conclusion of certain federal grants and contracts supporting development of a broad-spectrum antiviral. These revenue decreases were partially offset by a $984,000 increase in grant usage by the dengue fever and Lassa fever programs.
Research and Development
Research and development ("R&D") expenses were $4.2 million for the three months ended September 30, 2012, a decrease of $1.0 million from the $5.2 million incurred for the three months ended September 30, 2011. The decrease is mainly due to a decrease in expenses related to the development of ST-246, Dengue fever antiviral, and a broad-spectrum antiviral.
For the nine months ended September 30, 2012 and 2011, we incurred R&D expenses of $13.8 million and $12.6 million, respectively, an increase of $1.2 million. The increase is mainly due to an increase in expenses related to development of a Lassa fever antiviral and employee compensation.
Selling, General and Administrative Expenses
Selling, general and administrative ("SG&A") expenses for the three months ended September 30, 2012 and 2011 were $3.1 million and $4.0 million, respectively, reflecting a decrease of approximately $830,000. The decrease is primarily attributable to a decrease of $2.1 million in non-cash stock-based compensation, offset by an increase of $780,000 in legal fees pertaining to litigation and a $535,000 increase in employee compensation.
For the nine month periods ended September 30, 2012 and 2011, SG&A expenses were $8.8 million and $17.6 million, respectively, a decrease of $8.8 million. The decrease is primarily attributable to a $9.4 million decrease in non-cash stock-based compensation, partially offset by an increase of $407,000 in the loss contingency pertaining to an ongoing legal matter and a $400,000 increase in employee compensation expense.
Patent Preparation Expenses
Patent preparation expenses were $377,000 and $1.1 million for the three and nine months ended September 30, 2012, respectively. This represents decreases of $105,000 and $147,000, respectively, over the comparable 2011 periods.
Financial Condition and Liquidity
Cash, cash equivalents and short-term investments on September 30, 2012 were $22.7 million, compared to $49.3 million on December 31, 2011.
Quarterly Report on Form 10-Q
SIGA is filing today with the Securities and Exchange Commission its Third Quarter Report on Form 10-Q for the quarterly period ended September 30, 2012. SIGA urges its investors to read this quarterly filing as well as its Annual Report on Form 10-K for the year ended December 31, 2011, also filed with the SEC, for further details concerning the Company. The Third Quarter Report on Form 10-Q and the Annual Report on Form 10-K are also available on the Company's website, at www.siga.com.
About SIGA Technologies, Inc.
In the United States and around the world, populations face a serious but unmet need for drugs to protect against potentially catastrophic emerging viral pathogens and biological weapons of mass destruction. SIGA Technologies, Inc. is a pharmaceutical company specializing in the development and commercialization of therapeutic solutions for some of the most lethal disease causing pathogens in the world - smallpox, Ebola, dengue, Lassa fever and other dangerous viruses. Our business is to discover, develop, manufacture and successfully commercialize drugs to prevent and treat these high priority threats. Our mission is to disarm dreaded viral diseases and create robust, modern biodefense countermeasures. For more information about SIGA, please visit SIGA's web site at www.siga.com.
The SIGA Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4504
This press release contains certain "forward-looking statements"' within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements relating to the expected receipt of a milestone payment for the product labeling plan, the safety and efficacy of potential products, the progress of its development programs and timelines for bringing products to market, the enforceability of the BARDA Contract and the resolution of our ongoing litigation with PharmAthene, Inc. 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. SIGA's actual results could differ materially from those anticipated by such forward-looking statements due to a number of factors, some of which are beyond SIGA's control, including, but not limited to, (i) the risk that potential products that appear promising to SIGA or its collaborators cannot be shown to be efficacious or safe in subsequent pre-clinical or clinical trials, (ii) the risk that SIGA or its collaborators will not obtain appropriate or necessary governmental approvals to market these or other potential products, (iii) the risk that SIGA may not be able to obtain anticipated funding for its development projects or other needed funding, (iv) the risk that SIGA may not be able to secure funding from anticipated or current government contracts and grants, (v) the risk that SIGA may not be able to secure or enforce sufficient legal rights in its products, including patent protection, (vi) the risk that any challenge to SIGA's patent and other property rights, if adversely determined, could affect SIGA's business and, even if determined favorably, could be costly, (vii) the risk that regulatory requirements applicable to SIGA's products may result in the need for further or additional testing or documentation that will delay or prevent seeking or obtaining needed approvals to market these products, (viii) the risk that one or more protests could be filed and upheld in whole or in part or other governmental action taken, in either case leading to a delay of performance under the BARDA Contract or other governmental contracts, (ix) the risk that the BARDA Contract is modified or canceled at the request or requirement of the U.S. government, (x) the risk that the adverse portions of the post-trial decision by the Delaware Chancery Court in the litigation brought by PharmAthene, Inc. will be upheld in further proceedings, including any appeal or cross-appeal, or that the favorable portions will be modified, (xi) the risk that the volatile and competitive nature of the biotechnology industry may hamper SIGA's efforts to develop or market its products, (xii) the risk that the changes in domestic and foreign economic and market conditions may adversely affect SIGA's ability to advance its research or its products, and (xiii) the effect of federal, state, and foreign regulation, including drug regulation and international trade regulation, on SIGA's businesses. More detailed information about SIGA and risk factors that may affect the realization of forward-looking statements, including the forward-looking statements in this presentation, is set forth in SIGA's filings with the Securities and Exchange Commission, including SIGA's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, 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 publicly update any forward-looking statements whether as a result of new information, future events or otherwise.