Court Upholds $113M Award to PharmAthene from Siga

The Delaware Supreme Court has upheld a $113 million award to PharmAthene for the value of lost profits for a Siga Technologies smallpox antiviral — but whether the biodefense company receives the money remains to be seen.

The ruling affirms a Delaware Court of Chancery decision in a case involving Tecovirimat that stems from failed merger and license discussions. It is Siga’s second appeal, with the company saying the lower court erroneously considered whether PharmAthene could recover lump-sum expectation damages. The high court said the lower body was not precluded from taking a second look at the lump-sum expectation damages.

However, there is uncertainty over whether Annapolis, Md.–based PharmAthene can collect the award. Its fate rests with the U.S. Bankruptcy Court for the Southern District of New York, in which Siga has filed for protection and a reorganization plan.

Read the Delaware court’s decision here: www.fdanews.com/12-28-15-PharmAthene.pdf and Siga’s filing in the bankruptcy court here: www.fdanews.com/12-28-15-bankruptcy.pdf.