Delaware Supreme Court rules in favor of PharmAthene

24 December 2015

USA-based biodefense company PharmAthene (NYSE MKT: PIP) announced today that the Delaware Supreme Court affirmed the Delaware Court of Chancery's decision (The Pharma Letter January 16) to award PharmAthene lump sum expectation damages for the value of PharmAthene's lost profits for SIGA's smallpox antiviral, Tecovirimat (ST-246).

PharmAthene’s share leapt 26.6% to $1.85 on Wednesday in anticipation of the favorable ruling, and a further 5.1% to $2.05 in morning trading today.

The Delaware Court of Chancery awarded PharmAthene $113 million in expectation damages plus interest and other costs, which if calculated based on the original decision (and including post-judgment interest) would provide for an estimated total of approximately $205 million. PharmAthene's ability to collect a monetary judgment, including post-petition interest, from SIGA remains subject to further proceedings in the Federal Bankruptcy Court.

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