SIGA Technologies(US:SIGA)2020-03-06 00:31Financial Data and Key Metrics Changes - SIGA's revenue for the year ended December 31, 2019, was approximately $27 million, consisting of about $11 million from the delivery of approximately 36,000 courses of oral TPOXX and approximately $16 million from research and development activities [17] - The company reported a pre-tax operating loss of approximately $2 million and a net loss per diluted share of $0.15 for 2019 [18] - As of December 31, 2019, SIGA had cash and cash equivalents of approximately $161 million, with about $96 million in restricted accounts available for loan-related payments [19] Business Line Data and Key Metrics Changes - The transition from the 1C BARDA contract to the 19C contract was highlighted, with substantial product deliveries and revenues expected to commence in 2020 [16] - The company anticipates delivering approximately 1.66 million courses of TPOXX to the Strategic National Stockpile (SNS) between 2020 and 2024, valued at approximately $532 million [14] Market Data and Key Metrics Changes - The international sales process for oral TPOXX is expected to be slow and unpredictable, with significant time required for government procurement [30][32] - SIGA is pursuing international sales, with a notable contract expected from the Canadian military for up to 15,825 courses of oral TPOXX [34] Company Strategy and Development Direction - The company has authorized a $50 million share repurchase program to signal confidence in its stock value and to create shareholder value [53] - SIGA is exploring new ways to expand its business beyond TPOXX, including collaborations for a second antiviral drug for smallpox treatment and potential acquisitions [54][56] Management's Comments on Operating Environment and Future Outlook - Management emphasized the importance of preparedness in light of the COVID-19 outbreak and its potential impact on health security [10][12] - The company expects to deliver oral TPOXX courses valued at approximately $101 million to the SNS by April 2021, with deliveries starting in the second quarter of 2020 [21][57] Other Important Information - SIGA has received funding under the 19C contract for the development of a pediatric liquid formulation of TPOXX and for backup manufacturing capabilities [25][26] - The company is preparing a marketing authorization application for the European Medicines Agency (EMA) to expand TPOXX's indications [39] Q&A Session Summary Question: Was the language regarding the 19C contract shown to the customer before publication? - Management indicated that the projections come from the company and that they maintain close contact with customers but do not disclose specific approvals from BARDA [61] Question: How was the $50 million repurchase figure determined? - Management explained that the figure was chosen to signal that the share price is undervalued and to provide flexibility for future investments [64] Question: Concerns about the size of the repurchase relative to cash on hand? - Management acknowledged the concern and emphasized the importance of being disciplined in investment decisions while signaling confidence in the company's future [68]