PharmAthene, SIGA plan merger to establish biodefense company

By Lisa Kerner

Erie, Pa., March 14 - PharmAthene, Inc. and SIGA Technologies, Inc. said the two companies have entered into a term sheet providing for the merger of PharmAthene and SIGA.

The combined company will operate under the name PharmAthene and features a substantial portfolio of procurement-stage biodefense products targeting anthrax, smallpox and chemical nerve agents, as well as a pipeline of drug candidates targeting category A biowarfare agents and emerging infectious diseases, according to a company news release.

David P. Wright, president and chief executive officer of PharmAthene, will serve as president and chief executive officer of the combined company.

"Today's announcement furthers PharmAthene's strategy of securing a leadership position in biodefense by rapidly expanding our portfolio in order to meet the urgent biosecurity needs of this nation and its allies," Wright said in the release.

"A merger with SIGA will combine PharmAthene's strong development and commercialization capabilities with SIGA's outstanding research capabilities to create an expanded biodefense platform with multiple procurement-stage products and near-term revenue opportunities."

The shareholders of SIGA are expected to own about 32% of the combined company, which should remain listed on the Nasdaq stock market.

The term sheet, approved by the both companies' board of directors, is conditional on execution of a definitive merger agreement, shareholder and regulatory approval and other customary closing conditions, according to the release.

The merger is expected to close during the second or third quarter of 2006.

PharmAthene is a privately held biotechnology company located in Annapolis, Md.

New York-based SIGA applies viral and bacterial genomics 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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.