Biotech Values

[DewDiligence]

PharmAthene and SIGA Technologies Sign Definitive Merger Agreement to Establish Premier Biodefense Company

[“Biodefense,” yes, but “premiere” is a bit of a stretch. PharmAthene owns Protexia, a product acquired from Nexia (now merely a holding company) that involves an IP license from GTCB, while SIGA acquired the biodefense portfolio of VPHM two years ago for a song.]

http://biz.yahoo.com/bw/060609/20060609005154.html?.v=1

>>
June 09, 2006 07:30 ET

ANNAPOLIS, Md. & NEW YORK, Jun 09, 2006 (BUSINESS WIRE) -- PharmAthene, Inc. and SIGA Technologies, Inc. (SIGA) announced today that they have signed a definitive agreement providing for the merger of PharmAthene and SIGA. The combined company, which will operate under the "PharmAthene" name, will be a leader in biodefense featuring a substantial portfolio of procurement-stage biodefense products targeting anthrax, smallpox and chemical nerve agents, as well as a robust pipeline of therapeutic and prophylactic drug candidates targeting Category A biowarfare agents and emerging infectious diseases.

"A strategic merger with SIGA significantly advances our strategy of building a leading biodefense company with a comprehensive portfolio of medical countermeasures to meet the urgent needs of our Nation and Allies," said David P. Wright, President and Chief Executive Officer of PharmAthene. "Combining PharmAthene's strong development and commercialization capabilities and procurement-stage biodefense products with SIGA's procurement-stage smallpox antiviral treatment, ST-246, and exceptional research pipeline, establishes a premier biodefense organization with multiple procurement-stage products with near-term revenue potential, and a broad research pipeline focused on biodefense and emerging infectious diseases."

"Following the merger, our biodefense portfolio will include procurement-stage products targeting three of the top five priorities under Project BioShield," said Mr. Wright. Included in this portfolio are:

-- ST-246, a small molecule orally-active antiviral therapeutic for the treatment of smallpox and other orthopox virus infections.

-- Valortim, a fully human monoclonal antibody being co-developed with Medarex (MEDX) for the prevention and treatment of anthrax infection.

-- Protexia a novel bioscavenger to prevent and treat organophosphate nerve agent poisoning.

"Recently, both Valortim and ST-246 have made important clinical progress," continued Mr. Wright. "Phase I clinical testing of Valortim(TM) in healthy volunteers to evaluate safety and dose response has recently been completed. Detailed results from the study are planned for release later this year. SIGA recently commenced a Phase I study of ST-246 in healthy volunteers, which is expected to be completed shortly. Preclinical studies of Valortim(TM) and ST-246 have previously demonstrated efficacy in animal models. If the Phase I results support safety in humans, then we expect that Valortim(TM) and ST-246 should be promising candidates for procurement consideration for the Strategic National Stockpile."

Donald Drapkin, Chairman of the Board of SIGA, commented, "We see this strategic merger with PharmAthene as a tremendous opportunity for our Company and our shareholders. PharmAthene brings a management team that is highly experienced in identifying niche markets, developing drugs to address those markets, and launching successful products that dominate their respective therapeutic classes. We are confident in their ability to generate tremendous value for our shareholders, while providing the necessary vision and leadership to drive future growth."

The merger agreement, which has been unanimously approved by the Boards of Directors of both companies, is subject to shareholder and regulatory approval, the completion of a financing transaction, and other customary closing conditions, and is expected to close in the third quarter. David P. Wright, President and Chief Executive Officer of PharmAthene, will serve as President and Chief Executive Officer of the combined company. WR Hambrecht + Co and Sutter Securities Incorporated acted as financial advisors to PharmAthene and SIGA, respectively.

…About PharmAthene, Inc.

PharmAthene, a privately-held biotechnology company, was formed to meet the critical needs of the United States by developing biodefense products. PharmAthene is dedicated to the rapid development of important and novel biotherapeutics to address biological pathogens and chemicals that may be used as weapons of bioterror. PharmAthene's lead programs include Valortim(TM) (being co-developed with Medarex (NASDAQ:MEDX)) and Protexia. PharmAthene is located in the Chesapeake Innovation Center in Annapolis, MD, the first technology incubator focused solely on Homeland Security. PharmAthene has been successful in obtaining U.S. Government and Venture Capital funding to finance the development of its portfolio products. For more information on PharmAthene, please visit its website at www.PharmAthene.com.

About SIGA Technologies, Inc.

SIGA Technologies is applying viral and bacterial genomics and sophisticated computational modeling in the design and development of novel products for the prevention and treatment of serious infectious diseases, with an emphasis on products for biological warfare defense. SIGA's product development programs emphasize the increasingly serious problem of drug resistant bacteria. In addition to smallpox, SIGA has antiviral programs targeting other Category A viral pathogens, including arenaviruses (Lassa Fever Virus, Junin, Macupo, Guanarito, and Sabia), Lymphocytic choriomeningitis virus (LCMV), Dengue, the filoviruses, Ebola and Marburg. For more information about SIGA, please visit SIGA's Web site at www.siga.com.
<<