Smallpox Drug Maker Files Bankruptcy to Fight Court Loss
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The biological warfare defense firm that makes the only treatment for smallpox in the U.S. government’s strategic drug stockpile filed for bankruptcy, claiming a rival’s victory in a contract dispute is endangering its ability to produce the medicine.
Court protection will allow Siga Technologies Inc. to put off posting a court bond on a potential $232 million damages award to competitor PharmAthene Inc. while it attempts to lower the penalty on appeal and continue operations, the company said in a Chapter 11 petition today in Manhattan bankruptcy court.