PharmAthene Announces Delaware Supreme Court Hears Oral Arguments In Its Litigation With SIGA Technologies

   PharmAthene Announces Delaware Supreme Court Hears Oral Arguments In Its
                      Litigation With SIGA Technologies

PR Newswire

ANNAPOLIS, Md., Jan. 10, 2013

ANNAPOLIS, Md., Jan. 10, 2013 /PRNewswire/ -- PharmAthene, Inc. (NYSE MKT:
PIP) announced that the Delaware Supreme Court heard oral arguments today
related to both parties' appeal in the Company's on-going litigation against
SIGA Technologies. SIGA appealed the final judgment in favor of PharmAthene
issued by the Delaware Court of Chancery on May 31, 2012, in which PharmAthene
was awarded 50% of the net profits over a period of ten years from all sales
of SIGA's smallpox antiviral therapeutic, Arestvyr™ (formerly ST-246^®) and
related products, after SIGA receives the first $40 million in net profits, as
well as a portion of the Company's attorney's fees and other costs. In
response to SIGA's appeal, PharmAthene cross-appealed, challenging other
aspects of the trial court's ruling.

"We are pleased to have concluded oral arguments before the Delaware Supreme
Court, which represents the final stage before a ruling from the Delaware
Supreme Court," commented Eric I. Richman, President and Chief Executive
Officer.

Under the Chancery's Court's May 31, 2012 final ruling, once SIGA earns $40
million in "net profits," PharmAthene shall be paid 50% of all net profits for
a period from the date of entry of the Court's final order until ten years
from "first commercial sale." SIGA recently reaffirmed guidance that it will
begin sales to the U.S. government in the first quarter of 2013. According to
the ruling, the first commercial sale shall be deemed to have occurred
following initial delivery of, and payment for, the product. The Court also
awarded PharmAthene $2.4 million to cover a portion of its legal fees and
expert witness and other costs, along with interest at the legal rate from the
date of the final order until payment is made.

In 2011, the Biomedical Advanced Research and Development Authority (BARDA)
awarded SIGA a base contract for the initial procurement of 1.7 million
treatment courses of Arestvyr™. The five-year base contract award is valued at
$433 million, of which approximately $412.5 million is for purchase of the
product.

A copy of the Court's final judgment in the case, as well as the initial
opinion, is available on the Company's website at http://www.pharmathene.com/
under the "Investor Relations" tab.

About PharmAthene, Inc.

PharmAthene was formed to meet the critical needs of the United States and its
allies by developing and commercializing medical countermeasures against
biological and chemical weapons. PharmAthene's lead product development
programs include:

  oSparVax™ - a second generation recombinant protective antigen (rPA)
    anthrax vaccine
  oRecombinant BChE- a novel bioscavenger for the prevention and treatment of
    morbidity and mortality associated with exposure to chemical nerve agents
  oValortim^® - a fully human monoclonal antibody for the prevention and
    treatment of anthrax infection

In addition, pursuant to a final judgment issued May 31, 2012 from the
Delaware Court of Chancery, PharmAthene is entitled to 50% of the net profits
over 10 years from all sales of SIGA Technologies' Arestvyr™ (formerly called
ST-246^®), a novel smallpox antiviral agent being developed by SIGA for the
treatment and prevention of morbidity and mortality associated with exposure
to the causative agent of smallpox, and related products, once SIGA receives
the first $40 million in net profits from sales of Arestvyr™. For more
information about PharmAthene, please visit www.PharmAthene.com.

Statement on Cautionary Factors

Except for the historical information presented herein, matters discussed may
constitute forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 that are subject to certain risks and
uncertainties that could cause actual results to differ materially from any
future results, performance or achievements expressed or implied by such
statements. Statements that are not historical facts, including statements
proceeded by, followed by, or that include the words "potential"; "believe";
"anticipate"; "intend"; "plan"; "expect"; "estimate"; "could"; "may";
"should"; "will"; "project"; "potential"; or similar statements are
forward-looking statements. PharmAthene disclaims any intent or obligation to
update these forward-looking statements other than as required by law. Risks
and uncertainties include risk associated with the reliability of the results
of the studies relating to human safety and possible adverse effects resulting
from the administration of the Company's product candidates, unexpected
funding delays and/or reductions or elimination of U.S. government funding for
one or more of the Company's development programs, the award of government
contracts to our competitors, unforeseen safety issues, challenges related to
the development, scale-up, technology transfer, and/or process validation of
manufacturing processes for our product candidates, unexpected determinations
that these product candidates prove not to be effective and/or capable of
being marketed as products, as well as risks detailed from time to time in
PharmAthene's Forms 10-K and 10-Q under the caption "Risk Factors" and in its
other reports filed with the U.S. Securities and Exchange Commission (the
"SEC"). In particular, PharmAthene has not verified independently any of the
statements or estimates previously made by SIGA with respect to the timing of
sales, the value of the market or with respect to final orders from the US
government. Accordingly, no assurances can be given with respect to the
accuracy or attainability of any of such estimates. Further, there is
significant uncertainty regarding the level and timing of sales of Arestvyr™
and when and whether it will be approved by the U.S. FDA and corresponding
health agencies around the world. We cannot predict with certainty when SIGA
will commence delivering any product or will begin recognizing profit on the
sale thereof and there can be no assurance that any profits received by SIGA
and paid to us will be significant. Furthermore, SIGA there can be no
assurances that the decision of the Chancery Court will not be reversed or
that the remedy will not otherwise be modified upon appeal. In addition, we
cannot predict how long the appeal could delay the receipt of payments, if
any, from SIGA. Copies of PharmAthene's public disclosure filings are
available from its investor relations department and our website under the
investor relations tab at www.PharmAthene.com.

SOURCE PharmAthene, Inc.

Website: http://www.pharmathene.com
Contact: Stacey Jurchison, PharmAthene, Inc., +1-410-269-2610,
Stacey.Jurchison@PharmAthene.com
 
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