PharmAthene Submits Legal Brief in Response to SIGA Technologies’ Motion for Reargument
ANNAPOLIS, Md., Oct. 13, 2011 /PRNewswire/ — PharmAthene, Inc. (NYSE Amex: PIP) today announced that it has filed its legal brief in response to SIGA Technologies’ motion for reargument. On September 22, 2011 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 ST-246 and related products after SIGA receives the first $40 million in net profits.
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.
“We look forward to Judge Parson’s decision on the motion and next steps,” commented Eric I. Richman, President and Chief Executive Officer. “If the court denies the motion, the parties will have 20 days from that date to submit a proposed form of final judgment, following which the Court will render its final order.”
About PharmAthene, Inc.
PharmAthene was formed to meet the critical needs of the United States and its allies by developing and commercializing medical countermeasures against biological and chemical weapons. PharmAthene’s lead product development programs include:
- SparVax(TM) – a second generation recombinant protective antigen (rPA) anthrax vaccine
- ValortimÃ‚® – a fully human monoclonal antibody for the prevention and treatment of anthrax infection
- ProtexiaÃ‚® – a novel bioscavenger for the prevention and treatment of morbidity and mortality associated with exposure to chemical nerve agents
In addition, pursuant to an opinion issued September 22, 2011 from the Delaware Court of Chancery, PharmAthene is entitled to 50% of the profits over 10 years from all sales of SIGA Technologies’ ST-246 – a novel smallpox antiviral agent for the treatment of morbidity and mortality associated with exposure to the causative agent of smallpox being developed by SIGA (once SIGA earns $40 million in net profits from sales of ST-246.)
For more information about PharmAthene, please visit www.PharmAthene.com.
Statement on Cautionary Factors
Except for the historical information presented herein, matters discussed may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Statements that are not historical facts, including statements proceeded by, followed by, or that include the words “potential”; “believe”; “anticipate”; “intend”; “plan”; “expect”; “estimate”; “could”; “may”; “should”; “will”; “project”; “potential”; or similar statements are forward-looking statements. PharmAthene disclaims any intent or obligation to update these forward-looking statements other than as required by law. Risks and uncertainties include risk associated with the reliability of the results of the studies relating to human safety and possible adverse effects resulting from the administration of the Company’s product candidates, unexpected funding delays and/or reductions or elimination of U.S. government funding for one or more of the Company’s development programs, the award of government contracts to our competitors, unforeseen safety issues, challenges related to the development, scale-up, technology transfer, and/or process validation of manufacturing processes for our product candidates, unexpected determinations that these product candidates prove not to be effective and/or capable of being marketed as products, as well as risks detailed from time to time in PharmAthene’s Forms 10-K and 10-Q under the caption “Risk Factors” and in its other reports filed with the U.S. Securities and Exchange Commission (the “SEC”). In particular, there is significant uncertainty regarding the level and timing of sales of ST-246 and when and whether it will be approved by the U.S. FDA and corresponding health agencies around the world. We cannot predict with certainty when SIGA will commence delivering any product or will begin recognizing profit on the sale thereof. Furthermore, the decision could be appealed by SIGA and there can be no assurances that the decision will not be reversed or that the remedy will not otherwise be modified. In addition, to the extent that there is an appeal, we cannot predict how long that will delay the receipt of payments, if any, from SIGA. Copies of PharmAthene’s public disclosure filings are available from its investor relations department and our website under the investor relations tab at www.PharmAthene.com.
SOURCE PharmAthene, Inc.