PharmAthene files legal brief in response to SIGA's motion for reargument

USA-based PharmAthene (NYSE Amex: PIP) says it has filed its legal brief in response to one-time merger partner SIGA Technologies' (Nasdaq: SIG) motion for reargument relating to profit sharing on a potential small pox drug, the sales of which could reach $400 million a year.

Last month, PharmAthene announced that the Delaware Court of Chancery had issued a ruling in its litigation against SIGA and awarded PharmAthene 50% of the net profits over 10 years from all sales of the small pox drug candidate ST-246 and related products after SIGA receives the first $40 million in net profits (The Pharma Letter September 25). SIGA said at the time it would likely appeal the ruling.

The defendant's motion for reargument asserts, among other things, that the Court erred in its application of law in awarding an equitable payment stream to PharmAthene. In its legal brief, PharmAthene outlines specific examples in Delaware case law supporting Vice Chancellor Parson's use of a constructive trust as an appropriate equitable remedy.