US Orders Antiviral Drugs Worth $138 Million From SIGA Tech

July 28, 2023

(Reuters) - SIGA Technologies Inc on Thursday said it has won a new contract for its antiviral drug, Tpoxx, from the U.S. Department of Health and Human Services, sending the company's shares up about 20% after the bell.

The order is for delivery of about $113 million worth of oral Tpoxx treatment courses and about $25 million worth of the intravenous formulation of the treatment, SIGA said.  

CEO Phil Gomez said the orders further highlight that many global leaders in public heath recognize the importance of orthopoxvirus preparedness and the need to take action to keep people safe.

SIGA expects to fully deliver the order of oral Tpoxx drugs in 2023 and expects to start delivering IV TPOXX in 2024. Prior to the delivery of the IV drugs, it will focus on fulfilling a prior IV order, the company said.

The drug was initially approved by the U.S. Food and Drug Administration for smallpox. The U.S. Centers for Disease Control and Prevention expanded its use to help tackle the spread of mpox in 2022.

The new orders follow earlier contracts that the company received from the U.S. Department of Defense when the country was stocking up on the treatment amid an mpox outbreak.

In May, the World Health Organization declared the end of the emergency status for mpox, a viral disease which spreads through direct contact with body fluids and causes flu-like symptoms and pus-filled skin lesions.

(Reporting by Sriparna Roy in Bengaluru; Editing by Devika Syamnath)