Why PharmAthene Is Up 56% In #PreMarket Trading
PharmAthene (NYSE: PIP) is on track to be Monday’s biggest gainer.
A Delaware court ordered SIGA Technologies to pay lump sum expectation damages to PharmAthene for lost profits relating to SIGA’s smallpox antiviral. On top of lost profits, SIGA will pay for prejudgement interest and part of PharmAthene’s attorney and witness fees.
According to PharmAthene, it should have received the license development and marketing rights after a merger with SIGA fell through; since Pharmathene never received those rights, it decided to sue.
Related Link: The Supreme Court Boosts Zix Corp
In 2010, James Altucher said the company could gain $100 million to $400 million from the lawsuit, adding $5 to $10 per share in value.
PharmAthene CEO Eric Richman commented, “We are extremely pleased by the Chancery Court's ruling to award PharmAthene lump sum expectancy damages that it suffered due to SIGA's breach of contract. We look forward to working with our damages expert to calculate the lump sum damage amounts in accordance with the Court's decision and its instructions in the accompanying order."
Shares of PharmAthene were last trading at $1.96, up 55.9 percent in Monday’s pre-market session.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.