SIGA - Earnings call transcript Q3 2020

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Operator

Welcome to the SIGA Business Update Call.

Before we turn the call over to SIGA management, please note that any forward-looking statements made during this call are based on management’s current expectations and observations and are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements.

For a discussion of factors that could cause results to differ, please see the company’s filings with the Securities and Exchange Commission, including without limitation, the company’s annual report on Form 10-K for the year ended December 31, 2019, and its subsequent reports on Form 10-Q and Form 8-K.

Phillip Gomez

Thank you for taking the time to join today’s call. Today, I’m joined by Dan Luckshire, our CFO, and we are pleased to have this opportunity to provide a quarterly update on our achievements and upcoming objectives. will financial business update. I will and call, a provide this provide update a Dan On we’re together. I by which something acknowledging like the still would to pandemic, we start recognize this call all navigating is its With regard pandemic, general on COVID-XX to the business upon potential to and we our population. impact continue the monitor

who and with are by sector this to globe we fortunate tirelessly with dramatically adversely At pandemic all bring Our any tools this and the pandemic help in are who’ve thoughts working public in impacted here disease not develop and around been those in those the the to U.S. continue devastating material the under has respect. impacted business control. that SIGA, our be to the private

continue challenging accomplish perform while during employees to business growth the evident on to remotely. primarily due multiple and grow and ways XXXX SIGA’s period, are we development the performance our effective incredibly find is the and to we front, hard of operating this the fronts: front front. well ensure partners goals In regulatory work our working in which fact, predominantly and to

operating front, timely under September, been deliveries approximately the or Stockpile to XXX,XXX XXC total TPOXX the delivering we TPOXX brings oral basis oral In XXX,XXX XX-Q first on reflected SNS results. XXXX in we for the BARDA a contract. courses financial courses, approximately of National Strategic have the delivered X of the to On which TPOXX is SNS. months This

delivery courses fourth in will SNS another to October. Additionally, quarter This the the XXX,XXX approximate TPOXX reflected oral delivered we financial results. of be in

of cumulatively represents by and TPOXX. with PHAC XX,XXX contract the Canada TPOXX position PHAC, Canada. issued would of the Public X building at announced the front, award intention the international Canadian of contract approximately to an PHAC the contract oral by years then a overall announcement courses A PHAC to distinct in military development similar combination Canadian revenues of or April, contract, military generate the oral of the market and SIGA PHAC in procurement if XX,XXX the up a another separate X-year are executed for Canadian approximately over its contract step deliver to TPOXX process This up $XX with deliveries business to is If exercised. military Health pricing Agency to the of for over period. up the pricing to next would time cumulative courses the in to all options million On to

on the Going expect with forward, build we to another international the months. X within Canadian purchases next order

expect be the annual order to a order contract. next an will multiyear likely opposed as We

and over and and range a to good for TPOXX TPOXX. placed on the within to prospects XX believe good Beyond to broadly, oral countries for The increase pandemic we be contracts the additional are for conversations we some believe term, preparedness which to of next continue slowed advance SIGA broad will with it but few orders has in months. conversations COVID-XX anticipated orders pandemic months, international the focus short is continue orders X and/or next

touch set filings, appropriate TPOXX to initiatives, soon TPOXX as at regulatory pursue of complications. to indications briefly the and support of it file plan in same MAA likely as for addresses in a prophylaxis indications the the and regulatory I a programs. a and to this of cowpox, in TPOXX TPOXX to of of with a as this With of IV Europe people the to for for smallpox, a X for important year late starting to respect at postexposure NDA similar in submission oral jurisdictions forward Canada including in would smallpox to when outbreak. the with domestic We year. time. year plan an the these this be period, on MAA program filing the monkeypox with prophylaxis of in submission that U.S. end planned first With oral or activity Subsequent and FDA it filed postexposure earlier quarter vaccinia with continue of respect in the we On an program XX-month the PEP, the TPOXX XXXX. to regulatory as is submissions application includes pace, label IV early that Health to majority for a Europe treatment a we and the plan fast Canada regulatory The continues event expansion front, make development use within discussions in for like submission press oral X

such, discussion merits is the increasing about the the As important program an PEP of in size the element government U.S. overall of the with SNS. the

sick early an on XXXX. capsule. important IV this IV unable the next of would update this supplement a to available is ensure the TPOXX quarter oral the We XXXX. in in expect regard or oral the we program as From U.S. to update an be earlier as to it TPOXX FDA in public file swallow status program this perspective, to with those to to seeks With health too will quarterly first noted provide call, a NDA the program, for

point, important continues At the formulation to Finally, the the call population update. by pediatric like BARDA’s covered TPOXX and to turn financial current conduct XX the those I be label, would SIGA not of development over support, kilograms unable for would work swallow are on a to suspension Dan those serve who under to capsules. that with this liquid to

Dan Luckshire

Thanks, Phil.

$XX September million months XXXX, SIGA’s ended For million, approximately and and the was revenue XX, X X $XX respectively.

XXX,XXX or the relates the the of Stockpile million quarter, National For oral TPOXX approximately $XX approximately to courses third of revenue delivery Strategic SNS. of to

approximately approximately X million X ended and was the warrant, ended Net is $XX balance the turn, $X.XX fully months the to oral diluted XXX,XXX to SNS, cash X XX, September million respectively. of to respectively. $X revenue the approximately TPOXX of months delivery and For and and $X.XX fair of million the Canadian the for the income relates which courses and of the ended interest months X value delivery through $XX September and Operating loan the approximately in of million XX, September company the X share million. September $XX and military. XX, million In EPS retirement, $XX million per relates the with $XX respectively. excludes $XX the to to approximately per TPOXX income, expense, term XXXX, adjustments XX, income, approximately At interest connection of oral courses share, costs XXXX, taxes of was was

During the repurchased approximately of shares for third approximately $X.X quarter, million. SIGA XXX,XXX stock its common

of million X.X million. September of company As cumulatively XX, approximately $XX repurchased its this for year stock common has the approximately shares

internationally. Looking within beyond to and as the product respect in reflected U.S. TPOXX with States, approximately procurement the September be the delivery results quarter oral we the results. XX, financial will fourth in to expect of activity of This XXX,XXX delivered October. momentum United our we continue In SNS financial to courses the

approximately such, courses total XXXX, are deliveries in BARDA revenues year $XXX contract the of million. the XXX,XXX for XXC As TPOXX under resulting of calendar approximately expected annual to total oral

the options up for million up announced of or be can XX,XXX expected specified XXXX, X,XXX of Public purchase exercise TPOXX to regard Agency in cumulative a $XXX to Beyond after in XX,XXX advanced March oral procurement-related October courses XX, notice: and to by XXC PHAC delivered as are exercise. future total be Canada delivered BARDA the the awards be March courses to years, courses Health contract XX, XXXX; remaining an March contract international delivered intent subject option of XX,XXX within by its With to BARDA. is to XXXX, X courses XX, additional of XXXX; to market, the by

revenues SIGA Phil the As PHAC to the I contract, the Phil. million in to deliveries pricing pricing the turn At up if exercised. concludes is point, to Canadian the XX,XXX years similar earlier, military options the up total, of call. in the contract over $XX to call if This approximately If will approximately all next are executed by to the PHAC would at contract courses section and Canada Canadian cumulatively of contract cumulative would are TPOXX to exercised. then deliver over generate military April, this all X financial mentioned of oral issued options the the positioned

Phillip Gomez

to for we that that closing, in reiterate combination the with believe Dan. a for Thanks, in I bright are we the future, want pursuing SIGA. XXXX, achievements In goals provide future

create range for and We U.S. to XXC to value, including oral a under pursue international to other will of remarks, we and pursuit of to for approval orthopoxviruses; support and oncology and through additional for approvals new products. TPOXX; expansions of label our delivery concludes those continued session. leverage international TPOXX the and pursuit cover This now PEP; to sales contract; stockpile sales; TPOXX Q&A avenues formulations supporting BARDA of prepared expansion for courses our PEP Meridian regulatory include capability the continue and full begin ongoing collaborations extending will seek

Operator

you. [Operator Instructions] Thank you. Thank

is Please of line your with question from first proceed coming with the Horton Our James. Joaquin Raymond question.

Joaquin Horton

guys. quarter, Great

Phillip Gomez

Appreciate Joaquin. Thanks, it.

Dan Luckshire

Joaquin. Thanks,

Joaquin Horton

Okay.

tests in comment questions. our are are we buyback, Anyway, about quick setup supposed on back, going? of We program, of sort the we couple sellers how more bit to that of XXX,XXX we to shares. our one XXX,XXX just bought Just approved. that human – bought which get I How and It tests bought shares questions back than some a PEP they share on little couple looks short the a doing testing? is like got – a

Phillip Gomez

the question. So I thanks, appreciate Joaquin.

study. two So studies: any human you are smallpox evaluate safety will studies then be one expanded are and to about with we correct, is two there if Jynneos vaccine the an have there that interference talked we doing, clinical

are And that with mentioned on year. as are the update for I planning We give first it. this quarter those well planning developing we call, next progressing protocols on in to very an and

next detailed how a the and there. our on of update that call, progressing that have give is plans we we more program will So,

I appreciate question. So, the

Joaquin Horton

cash plans of with as what – on cash. what end million it We by Any going back thoughts in do of to a year according seem on figures will So, bunch am of cash? since that the whole use, to the the the my might maybe I as for use that? your the you money not much be of envelope other question one of have are spending accumulating we to use are $XXX

Phillip Gomez

have we share we this of stock. million March So repurchase talked program. before, shares of million X.X year, $XX about stock, repurchased have authorized of Since as have we

have that certainly authorized we plan. repurchase So been share active under

there our We at business. platform that products to continue could grow look help to are us also we assets, the to continue layer also on

management at we capital shareholders. we look can an broadly ongoing best So, value the at on basis, way we look look to to those. return And then at our

that evaluate step repurchase million to we continue team at that. is on a active to management an think progress our will good $XX continue and we and and first Board our certainly, So in look share program

Joaquin Horton

you purchases Well, to that? I constrained seem price quarter. last mean, on this Is price be on the constraint your there – a on

Phillip Gomez

we for repurchase programs. look we our have, It’s all So, a program. considered repurchase we share price, that our said at exercises, as items as the capital authorize part we of when are of factors number share the the prospects option of

Joaquin Horton

were, had look luck, XX of all call. for if Anyway, this only many one. next We shares I there wasn’t And trading you guys. Because say, that to shares, conference per bought Good last days day. very the this XXX,XXX forward quarter. that’s

Phillip Gomez

appreciate dialing asking much, Thanks. Joaquin. so I Thanks in you and questions.

Operator

you. Thank

Private from is your question a proceed Investor. Our the line question. Please of [indiscernible], next with

Unidentified Analyst

the Congrats on quarter.

same potential second the we expect so different it Or – divided and see option Or of also the was. first So with anticipate what that like up in in an it we like XXC what entirely – is could for with we different regards to the contract. I’d option the the to and My basically you manner? numbers, first? parts? first in see X I’d Dan, as exercise can – the it quarter the should those question to have I fourth be and that’s into completion be Could if to exercise delivery is done

Phillip Gomez

Yes.

you and thanks So to talk Teddy, for good to joining.

exercised divided correct, number into year. the into you’re almost short in X. government The this all parts. order X X X asked So as was to pretty essentially divide you under And not us we deliveries can the CLIN has see,

government now, us XXX.X still have right of insights the that to that. might So the But X change ask for as it CLIN entire is I million. don’t

Unidentified Analyst

I’m because deliveries Obviously, XXXX, adjusted in – just back And into milligrams Okay. until at was your XXXX. it know then I it looking XXX up. XXXX was

expect the That’s in – option So curious for what guess about Do in how or an first now. of confident right quarter? you are months? exercise you anticipate something announcement next the I’m the I I’m receiving couple second in

Phillip Gomez

Yes.

So exercised. question when be exactly the around I would precision it the appreciate of option

nature longer I given they the government, that, think stated works, of to the term courses. government with Given tend maintain around that to way they these want the contracts the have X.X a little million

management do to over shown presentation, X-year X maintain that. options they a to in our we’ve As plan period,

we now to options. X X XXXX. out, you in down provided point We’re years And and as deliveries

would Part would of expiries – expect the budgeting there year. we would it driven U.S. So it be is government next by process.

government to the budget. So U.S. federal has a approve

to so approved, there for year. allows its cleared a a the they have. the months. it was BARDA the that And places until what way even budget sometimes resolution issue the contracts money divisions. March month, the last number then of months That X like this work takes budget to and a was And wasn’t into continuing year, actually saw we SNS federal with is new operating Once for of actually federal

how the But can to we part to They to has working can answer is of your are to a be approved. your COVID. around BARDA see question will fast to So we so be option that answer that. of continue certainly redeliver exercise another will the optimistic that exercise question on Part SNS. federal are we budget the when there

contracts, did product deliver we of in on planning to can we this we as Just future and sure make international year, contracts, that domestic anticipation on manufacturing are etcetera.

that want to resupply. for ready we be So

Sorry long Teddy. answer, for the

Unidentified Analyst

read answer or product for perhaps the that the option gave around, then like purchase to lot it option a you great time. active need time a big that accurate is and to took delivered time exercise, exercised. because ingredient, they that much not that I this the pharmaceutical actually, made And was Is because actually That be what a detail. you have it able of okay. what from sounds that’s And on is read was provide it the – when there if No, ready, could it announcement that might lead was an lead you said? quicker first

Phillip Gomez

Yes.

anticipation manufacturing certainly we’re product future of So in deliveries.

that’s certain. So yes,

Unidentified Analyst

Okay, one excellent. you And months? then expecting I say you one next hear did within question, order That’s X other that international perfect. the are

Phillip Gomez

you Yes. And consistent one always want with with also large that to have Canada, mentioned where you SIGA very that And the have followed that out, will but do for have a what another at a have predict, very have had those point of will come we their up. U.S. called BioShield other annual don’t that seeing do Most are countries to They they to purchase hard that. time, know think stockpile budgets pretty for they countries I we we’re once. is I those fund long could government entire follow.

and we years. has announced additional subsequent So orders then place having then if anticipate Canadian they every being first year, materials order delivered you or with may see other that in the will order may that make their countries that be options

out, a see rolls color up. we’ll order to that of as that I coming and mix that’s So potential added that it

Unidentified Analyst

Okay. great. Thank That’s you much. very

Phillip Gomez

Teddy. much, so Thanks

Operator

comes Our you. Hutch Thompson from Capital. with question. of Please your with Instructions] Thank [Operator proceed next the question line Chris

Paul Saunders

quick guys. It’s on Chris. be you – expansion And an don’t Hey, the international question you know, it is that think I’m related this thinking news before ask start that might something approved. when will Phil, approval place? is as great ever that it that BARDA about they SNS know know and is going don’t on order. these well. on My I Paul questions expansion in you’ve I before approval to then need that And you appreciate timing quarter do consider that the but additional think actually they prepared if timing on I cuffed something expect And contract anyway. and really would to an to I that, you you It’s label PEP. the be or the like remarks Great – for for

Phillip Gomez

do a for with So that One, question high. believe interference and real theoretical scientific for full would or couple advance joining is of rationale second by thanks they FDA I’ll the before not we need it first, the we There’s thanks, that in question. the which Paul. for PEP for Thanks no answer approval reasons. no the very Jynneos vaccine bought scientific would is the reason interfere. a

And going So the product that. said, to need back contract, used be go experts government way And back it. it’s XXXX that’s case. to was Advisory anticipate going we most it’s public and where way PEP contemplated original the become Committee used, I And don’t way to meeting of if be had there would a part lot that’s use the should if health second, the go our used. be discussion FDA it’s than to look, stockpile increase the you of our that even to faster a the

variety So of think reasons, sooner. on that operate they for a can we

them that additional because Now requirement materials. hard to to change predict buy it time line is that what a requires and is

So we’re have to and ultimately, working for government. the to closely to wait we discuss. educate push But to that

On actual is on Part part not the line time you all the outcomes, sequence only FDA’s and and appreciate, line will these be. the time is for studies. that the that can planning drives approval the of of but size that of getting as development, what

on to that that’s we’re what why targeting, our looks and an give have like. So update Dennis in next PEP call,

So stay tuned on that.

Paul Saunders

congrats guys. again That’s Thanks. helpful great, and really

Phillip Gomez

Thanks.

Operator

the of with Jet Instructions] is [Operator Mark The questions. Matthew with you. from Thank proceed line your question next Please Capital.

Matthew Mark

a bit you onetime on would can international – when by be will that? elaborate the annual multiyear, purchase of there kind imply to a what mean that or opposed just next you of say you does Phil, be there be guys. that as Hi, sort order will that

Phillip Gomez

Yes.

will going countries year, anticipate contract we multiyear this we that with in option. can’t a that So every need a I and on to courses order we mean not trajectory year. advance, but they’ll going And I say, hey, we we’re they’re is what where X say, do to are think it say some

they if of So the countries are definitive following first the our you say, actually a would with but be discussions order some orders. we’ll it can anticipate once an tell year. order But I will understanding the order in year, place be I we’d only look, annual every would what it’s place

Matthew Mark

tie funding would considerations of that else of kind and that? from negotiating those a do anything kind or And it. back is anything standpoint budget to there Got explain or

Phillip Gomez

who our astounding long time a countries, As U.S., doing we colleagues things. and its has has own bureaucracy every at this Meridian, to very is style kind how the in unified just BARDA, other not are there In have of to these do It things. a been have country for standardized they and like how approach places. say, which

Sometimes, it’s the buying. military

and Sometimes, to is that this buy group it’s do. health normally for a public items unusual commercial may them

So was that business for example, start are a of a about the good the on pandemic. centralized thinks us few as that some especially country announcement with stockpiles, be that, these for manages would about it’s having of nice the BARDA we if a countries in could type but having this COVID-XX an months it ago together each do days to processes go from There things that, thinking result really forward. be that is builds to stockpiles, putting certainly things, pandemic, COVID-XX types a just place of these early realize, that learned inside work, approaches. Europe function that of kind It’s

that countries be So we’re that on and educating done. how encouraging can

Matthew Mark

it. Got

was plan, more cash? in quarter. buyback understand on that bit talk you expansively can and this of use a the the everyone balance cash executed barely I and sees on it So share the little

about light going It’s balance become someone bit the little more already cash a fact asked, to number. the And a Just especially meaningfully going is of as else that in why. grow. to larger

than think, right to date? is of more view to for point on have us that, shareholders a it detail So understand management’s in I

Phillip Gomez

We for active accretive, appreciate to There’s for manage the We assets that to Matthew. before. that of I appreciate program. have could certainly operations. the on share So for be a layer number know We business. buyback have that cash certainly you question, that cash. asked we our would look do do I we uses need

we’d to high as to for mentioned, think this we look share product will distribution other we buybacks it As set I say, layer want that been asset that. an a look going to do There’s a shareholders, at early flexibility at do of when. continue that around broad what’s We and cash. at to to still we and forward. we and exactly able I at quarter, to manufacture I level cash at in of be purchased up of something like and this to about at look certainly could to uses And discussions is which be the that if Board, so. shows continue is have all look the give we expectations go a time potential on will pandemic,

business a So it’s about are updates. quarter Dan, opportunistic now. where right target don’t that grow still I we’re because what do I the Matthew we We provide effectively in give had reiterate we know those be don’t we’ll we so the was thing how now. just thinking want to being can cash about exactly can think would now talk the actually end, to continue question balance. to you on at also right to if know right

Dan Luckshire

Yes.

– So a delivery the will beneficial did we $XX as meaningful October, million. we we And has cash in mentioned, quarter the impact which ended at product have on a balance.

have the as mentioned, potential the for it to do is of is to next outside such share to like to instructive such finding as think one as exercise. – order in option proactively manufacturing prepared repurchases uses be we Phil thing I or other do things cash, of overall company that assets the addition in

is so front-loading. some there And

rolling that into when You think got take you forward. to had about cash usage you some account things

broad things at inventory increases But and deliveries some year when we the also also, think So have are you a the we do a cash. take bite our like that, measure, concept of think have tend I out the that – as to about that have usage. cash of be also have as look about a given we to and in – flows building think these you And things, lumpy. we cash

usage. that had into account as we we So about cash to think take of timing

Matthew Mark

question. the share company the Just for other repurchase out more blacked the during typical quarter from Was one anything than periods? blackout

Dan Luckshire

No.

Matthew Mark

Okay. Thanks guys.

Operator

you. participation. Thank the reached our Thank this we conclude session, today’s Have time, your will wonderful day. you this At end a for have question-and-answer of conference. and also

Phillip Gomez	Chief Executive Officer
Dan Luckshire	Chief Financial Officer
Joaquin Horton	Raymond James
Chris Thompson	Hutch Capital
Matthew Mark	Jet Capital

SIGA (SIGA) 8 Nov 202020 Q3 Earnings call transcript