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    SIGA's Short-Term Move Belies Long-Term Potential

    Tue, 03/06/2012 - 12:24 EDT - Seeking Alpha
    • SIGA
    • VFC's Stock House

    By VFC: In keeping with the unofficial theme of the week - watching companies such as Human Genome Sciences (HGSI) and Amarin Corporation (AMRN) whose stock prices have provided ample trading opportunities over the last few months - let's take a look at Siga Technologies (SIGA). This one just about has it all right now to keep the headlines moving, legal issues, political drama, a huge government contract award and a product that could be worth billions someday. Siga's ST-246 is potentially the only orally administered antiviral targeting orthopox viruses that works, and the company has already tagged the product with an orphan drug designation and "fast track" status. What SIGA does not have right now, however, is price stability. Currently trading in the range of $2.70, this stock has traded as high as over fifteen dollars within the past year on the hype of the contract awarded by the Biomedical AdvancedComplete Story »

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      Pharmalot submits: And the answer is…when the biotech is controlled or affiliated with a privately run conglomerate. In this case, the US Department of Health & Human Services is about to revoke a contract awarded last month to Siga Technologies (SIGA), which is developing a drug to treat smallpox. The contract, perhaps worth as much as $2.8 billion, was part of a program that sets aside government work for small businesses.

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