SIGA Technologies (SIGA) Shares Tumble After Mpox Therapy Fails, Chief Medical Officer Terminated - Hagens Berman

Core Viewpoint - SIGA Technologies is facing scrutiny over its disclosures regarding the potential expansion of its lead product, TPOXX®, for treating Mpox, following significant stock price declines and an investigation into possible securities law violations [1][6]. Group 1: Company Developments - SIGA initiated clinical trials in October 2022 to assess TPOXX®'s safety and efficacy for Mpox treatment in the Democratic Republic of Congo [2]. - On August 15, 2024, the National Institute of Allergy and Infectious Diseases (NIAID) announced that the clinical trial for TPOXX® failed to meet its primary endpoint, resulting in a nearly 20% drop in SIGA's stock price [3]. - SIGA terminated its Chief Medical Officer, Dr. Jay Varma, on September 23, 2024, without providing an explanation, which further impacted the company's stock price [4]. Group 2: Controversial Statements - A video surfaced on September 25, allegedly featuring Dr. Varma discussing the need to maintain public belief in TPOXX®'s efficacy and suggesting media manipulation to prevent stock devaluation, which led to another significant drop in SIGA's share price [5]. Group 3: Legal and Financial Implications - Hagens Berman has launched an investigation into SIGA Technologies for potential misleading statements regarding TPOXX®'s efficacy and commercial prospects, indicating possible violations of U.S. securities laws [6].