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BeaconEquity.com: PharmAthene (PIP) Loses Steam, SIGA Technologies (SIGA) Plows Ahead

|Includes: SIGA Technologies Inc. (SIGA)

Shares of biodefense company PharmAthene Inc. (AMEX: PIP) this morning shed nearly 8% of their gains made yesterday after the company announced that it has been awarded 50% profit split on global sales of smallpox antiviral therapy by Delaware Chancery Court.

PharmAthene filed the litigation against SIGA Technologies in the Delaware Court of Chancery back in December 2006. The litigation relates to the company’s interest in ST-246, an orally available smallpox antiviral drug candidate.

The court ruled that once SIGA earns $40 million in net profits from net sales of ST-246, PharmAthene will be entitled to 50% of all net profits from such sales thereafter for a period from entry of the judgment until the expiration of ten years following the first commercial sale of any product derived from ST-246.

Eric I. Richman, president and CEO of PharmAthene, said that the company is extremely pleased with the court’s decision and that it is an important victory for the company and its shareholders. Richman further said that the ruling is transformative for the company.

Shares of SIGA soared more than 14% in today’s morning session.

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