SIGA cancels planned PharmAthene merger

New York, USA-based SIGA Technologies, a specialist in the application of genomics in the design of anti-infective agents, says that it has terminated its merger agreement with fellow US firm PharmAthene (Marketletter June 19). SIGA said that its decision was based on recent successes in its clinical trial program, in addition to its receipt of approximately $27.0 million in grant funding for its various developmental projects.

SIGA cited the $16.5 million contract with the US National Institutes of Health, under which it will advance the development of its small-pox drug candidate SIGA-246, as a key factor in its withdrawal from the merger. In addition, the company said that a second grant from the NIH, providing $6.0 million in funding for its Lassa virus antiviral development program, played a role in its strategic rethink.

Chairman of SIGA's board of directors, Donald Drapkin, said: "SIGA is excited about its future and committed to the development and successful completion of its lead product candidate SIGA-246...as well as its other antiviral and anti-infectives program."