SIGA Tech leaps nearly 53% on news of $2.8 billion smallpox antiviral contract

15 October 2010

Shares of US bio-defense company SIGA Technologies (Nasdaq: SIGA), jumped 52.7% to an all time high of $13.07 after the firm revealed that it had won a US government contract worth a potential $2.8 billion to supply its smallpox antiviral drug.

The US Department of Health and Human Services (HHS) announced its intention to make an award to SIGA of a contract to deliver 1.7 million courses of its smallpox antiviral for the Strategic National Stockpile, pending resolution of issues relating to SIGA's status with the Small Business Administration.

The award relates to a Request for Proposal issued by HHS's Biomedical Advanced Research and Development Authority (RFP-BARDA-09-35). The base contract, if finalized, is expected to generate revenues of around $500 million, and the entire contract, if all options are exercised, is expected to generate revenues of approximately $2.8 billion.

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