Boston, MA 08/12/2014 (wallstreetpr) – Biodefense Company, PharmAthene, inc. (NYSEMKT:PIP), may earn up to $500 million from a dispute involving SIGA Technologies, Inc. (NASDAQ:SIGA) on a smallpox drug; this is after a judge ruled on the same. Siga may be forced to pay up to $500 million in the form of lost profits under a licensing accord ruled by Delaware Chancery judge Donald Parsons.
Court To Decide On The Settlement Package
Judge Parsons must now decide on whether to order Siga to pay up to $500 million as damages at the back of the Siga stating that PharmAthene, inc. (NYSEMKT:PIP) does not deserve more than $50 million. John Lewis, an investor at Siga and former president of Gardner Lewis Asset Management is of the opinion that the judge must decide on what is reasonable based on the expectations of the total sales of the drug. Lewis has reiterated an award of more than $500 million would be absurd in this case.
The case might be pushed for review to the highest court in Delaware if the ongoing tussle between the two companies does not come to an amicable end in the lower court. The contest marks a new chapter in a six-year case involving a drug that was perceived’ as an effective drug of fighting smallpox mainly associated with terrorist attacks.
PharmAthene stock continues to be the main beneficiary of the ongoing tussle having risen by 43.20% on Monday trading sessions after it emerged it might earn up to $500 million in damages. Siga, on the other hand, sunk by 39%, its single biggest drop in more than three years
PharmAthene, inc. (NYSEMKT:PIP) had sued Siga in 2006 claiming rights to an antiviral drug that formed part of the licensing agreement. PharmAthene at the time claimed it deserved up to $1 billion in potential sales of the drug as it helped fund its development.
