On Wednesday, SIGA Technologies, Inc. (NASDAQ:SIGA) announced a new contract with the U.S. Department of Defense (DOD) to procure approximately $9 million of TPOXX.
This award is comprised primarily of oral TPOXX, with a small amount of intravenous (IV) TPOXX, and represents the third procurement contract award from the DOD over the past three years.
The company also received approximately $27 million to develop the post-exposure Prophylaxis indication for oral TPOXX.
Also Read: Mpox Variant Sparks Global Concern As Europe, China Ramp Up Screening.
Inclusive of this award, SIGA currently has approximately $154 million of outstanding oral and IV TPOXX orders, more than 85% of which were generated within the past three months.
Edison report adds that SIGA continues to advance its growth strategy, with recent contract wins from BARDA and the Department of Defense significantly boosting its order book.
The company is set to deliver IV TPOXX under orders from July 2023 ($25 million), and August 2022 ($8.4 million, of which $17.8 million from a $26 million order was already delivered in the first half of 2024).
These are part of approximately $155 million in outstanding TPOXX (oral and IV) orders.
SIGA anticipates delivering the remaining August 2022 IV TPOXX order and 80% of the BARDA oral TPOXX order in the second half of 2024.
While delivery timeline details are yet to be disclosed, Edison Group's report notes that new DoD order to start at least being partially serviced in fiscal year 2025.
Recently, the National Institutes of Health's National Institute of Allergy and Infectious Diseases (NIAID) announced topline results from a preliminary analysis of the PALM 007 trial of tecovirimat for mpox.
NIAID reported that the study did not meet its primary endpoint of a statistically significant improvement in time to lesion resolution within 28 days post-randomization for patients in the Democratic Republic of the Congo with mpox who were administered SIGA's tecovirimat versus placebo, weighing on the share price.
Edison analysts expect an improvement in investor sentiment with the recent DoD contract win.
"We maintain that mpox continues to be an opportunity for SIGA on the heels of the WHO declaration of a global health emergency," the analysts added.
Price Action: SIGA stock is up 4.07% at $9.72 at the last check on Friday.
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