SIGA Technologies is focused on an antiviral drug for treatment of the variola virus that causes human smallpox. A highly infectious disease, small pox has been all but completely irradicated through the widespread use of a vaccine. Only recently have drug developers attempted to bring an antiviral drug to the market. In 1918, the FDA approved SIGA’s oral formation called tecovirimat, TPOXX, for smallpox treatment despite having been only tested on animals infected with smallpox. Tests on healthy humans have demonstrated TPOXX to be safe and with only minor side effects.
TPOXX is stockpiled by the U.S. federal government along with other medicines and medical supplies deemed necessary if there is a public health emergency. Historic death tolls from smallpox were second only to bubonic plague. The economic consequences of an resurgence thus provides a strong case for continued maintenance of a treatment stockpile. Other countries also maintain stockpiles.
SIGA’s stockpile sales totaled $34.79 million in the twelve months ending September 2024. While the Company was not profitable during the period, cash flow generation was a positive $7.66 million. This represents a sales-to-cash conversion rate of 22.02%. With no debt on the balance sheet, SIGA’s operating cash flow can be prioritized for growth investments or distributions to shareholders. Indeed, the Company is pursuing additional applications for its TPOXX as well as additional treatments for infectious diseases.
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