SIGA - Earnings call transcript Q2 2021

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Operator

Welcome to the SIGA Business Update Call.

During the presentation, all participants will be in a listen-only mode. Afterwards we will conduct a question-and-answer session. [Operator Instructions] As a reminder, this conference is being recorded.

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. any events update this or undertake statements any call. not reflect to change does obligation publicly to forward-looking SIGA circumstances after

differ, Chief XX-K Commission, including, For cause limitation, the filings factors of report without the please on annual to Form with Exchange a like ended Executive Company's the to Form X-K. see and that Securities and December Form on XX-Q over ahead. go XX, Company's year Please the conference would Officer. XXXX, to for discussion results now reports Phillip the and Gomez, its could subsequent turn I

Phil Gomez

Thank take quarterly We'll Luckshire, taking update time our be update a and upcoming in call. opportunity this pleased today's Dan and you provide financial Dan update. this for are our I business I business to I'm questions. a join On will provide CFO. to and to objectives. by a the call, will provide joined Dan then have Today to happy

to of our TPOXX. quarter million of we second represent $X momentum sales following work continue multiyear international this build Medical initiative success oral and business We actively for these opportunities to In an Canada Meridian into first a turning in with sales. TPOXX X quarter. approximately XXXX toward quarter, coordination first international the continuing The Technologies, believe sales. in delivered to additional oral deliveries We reflects our million for

of provide impacted point comments may COVID-XX early and I currently and from timing the like a received that regarding by and last the some toward last Meridian initial reiterate foreign On of completion the pandemic. The to and working be incremental color. XXXX. in an are size order would the been with XXXX Canada the call to Specifically, in continue we would order investor timing, new finalizing this from similar jurisdiction orders to has be

has near subjecting pandemic international activities delivering slowing we pace international anticipated created continuing expect the of success the of coming the the to orders we While activity this fruition term, year, currently in SIGA having pre-pandemic. have development to would in which than slower a we business are risk headwind, continue will

previous the of clear it in the the to is that COVID continues investor impact and contracting, procurement calls, efforts. ability stress to us are that logistics of the activities pandemic to noted outside As finalize funding, COVID-XX response and organize countries'

As products like we Chief FDA note would case is the actively Europe, step so Canada, purchase. regulatory like important regulatory status Agency prior purchase must on to Officer our an several I European these with Canada. to pursue and wait This update the Canada countries. by with the with like can Scientific countries Dennis TPOXX relying an approval TPOXX in approval Hruby, discussion provide countries on for some while for would Health Europe approvals procurement others will next on our in oral review call Medicines in that regulatory approval, EMA large be the and

continue preparation the to to XXC we States, we the XXXX under build to Europe continue in chain XXC will both BARDA exercise in option dates in current track the approval procurement a with performance that regard continue supply the inventory With in our status staff the I Canada. by the for to work XXXX and of now, contract. For and late the And ASPR manage procurement contracts. we anticipation United to affirming activities summarize early and

recent only delivered we've in smallpox. which at partnership and Assistant highlight well Strategic preparedness, XXXX, as TPOXX was Obama United since X.X month million from to States maintenance exercise have last treatment governments long prepare. that note Secretary Stockpile Trump for a shelf other clarity National to seen in case important to And States to hopeful treatment University this the Dawn to courses ago. believe In a be government order provided stockpile government term near to of million year ensure we the and for of in pandemic with as are monkeypox And under that announcement of the African for collaboration O'Connell with a we role should a the more into that some June, announced not a we the Kingdom. We of TPOXX approximately to the and continue compassionate receive Response, of Preparedness compassionate support administration the have in I total that considering current life Oxford contract option announced regarding plus minimum seven cases to option courses a levels decade sworn administrations the the new a United it's X of Republic. than that week, Central expect Biden Orthopoxvirus like the TPOXX respect will the monkeypox a the a for United TPOXX I'd provide as as exercises. procurement for smallpox we With we we

critical Central announced case due highlighting top control the here recent cessation which that Additionally, XXs the recent monkeypox provided in of in These the with was be in elsewhere. US threat highlights events in is immunization a increase July, the should a patients likely cases in monkeypox an would or Having and public protection Texas. reports treatment in is monkeypox that be the that for mind it of to Africa, officials. combination treat cross outbreak to in effective smallpox there some had was health

terms has on current several in to we approval includes provide the for a Dan? TPOXX monkeypox no treat broader serious TPOXX primates. broader including same related over Orthopoxviruses it regulatory of and with who had the and within different Health In the from adverse label events pass believe smallpox, monkeypox discussion, year. which monkeypox. drug will labeling development. and that And now I'll effectively EMA applied fits to label FDA was we TPOXX in financial during the Relying The for efficacy this based on how clinical data non-human potential for update. of TPOXX the call data and has to SIGA same filings next seek plan part Dan a Canada

Dan Luckshire

Phil. Thanks

June XXXX three months was $X.X million SIGAs and revenue six million XX, ended approximately For and $XX.X respectively.

For the to quarter, of product million revenue the of to $X.X TPOXX Canada. relates second of approximately Public Agency oral Health sales

product fourfold. ended approximately sales For international increased In interest to excludes Health product million warrants the Agency June value June XX, sales June the more Operating the XX, six XXXX. income, the and ended oral has to adjustments months fair approximated taxes to three zero Canada. of which of the XXXX, $X the million relates six TPOXX revenue months to of Public income, ended than XX, $XX.X months comparison or of for

XX, Net For $X three June the six months for months was loss June ended million. income was $X.X ended the million. approximately XX, approximately XXXX operating

was For cash the was XX, ended the fully months approximately balance company the net share turn, per share for XX, three ended June diluted approximated XX, million. $XX million. per six XXXX zero June ended months loss diluted June XX, $X.XX. the months six At for fully $X.X the for loss June loss was In and

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

Phil. the the to total X.X XX, turn shares repurchase million As of of section stock call concludes at of million back this the a program since $XX June repurchased of the the I'll of its over cumulatively March the call. inception in approximately XXXX, approximately At company XXXX. common share financial This has of point,

Phil Gomez

Thanks few we Dan. A additional before Q&A. I'd to like touch things on turn to

of million and collaboration. continue procurement initiatives base sales up this are approximately such revenues the to to And have XXX existing in to of tied contracts. as build effort to TPOXX that contracts We procurement international Cipla work on we

larger Additionally, we program US PEP would BARDA. stockpile, mentioned of believe support contracts. result in of liquid of TPOXX as pediatric US Also, in supports previously, consideration a government we a of development procurement which turn with formulation the continue larger suspension government a

we investments earnings that share grow opportunity successful or to will well our cash, continue an acquisitions our as continuing provide best of earnings, as examine our As leverage and the buybacks, platform. potential cash including business generate diversify use to

including will cash, strategic a for program this procurement and regulatory As program actual In government under we allowed of in current program ultimately variety contract, year will of our option FDA mechanism be antiviral that up repurchased our finish program, supporting a stock, common of and advancing liquidity number which price $XX was SIGA the new our concludes program for action. novel or been the press expired. as expanding out company now XXXX repurchase PEP requirements the to depend other company's will market the under a Shares label the new session. the our and under priorities. driving which collaborations of corporate and we repurchased such has opportunities of smallpox once This procurement and to may expanding release new and common initiatives can note uses to the Please similar Canada, a the under has development XXC has factors, continue the remarks of second on options authorized worth submissions oral alternative summary, international announced begin under in the business of shares current contracts, stock we and development key focus timing repurchase XXXX. program, EU repurchase such with repurchased repurchase program, conditions oncology million a our the sales, exercise authorized amount and and afternoon prepared securing to and repurchased with on company's in Q&A Board TPOXX exercise XX, maximum under stock of earnings this the to December through once be March the

Operator

go question Thank line comes a Instructions] [Operator Jacobs Our you. Group. Please of ahead. first with from Edison Maxim

Maxim Jacobs

taking thanks guys, for Hi, my questions.

a ones, in of US to likely revenues, point of terms So in than QX? of most timing rather this at they be QX just the like are couple quick

Phil Gomez

to for the so Max, So thanks you. question. to talk Good much

procurement able say specific once I to on because QX we'll QX deliveries So sense provide a better occur. haven't the we would when versus guidance we're of option we yet. be not that get giving gotten would

exercised happen, the we with confirmation the the O'Connell, So option. think Dawn in the procurement they of we product. options till said, get of of procurement do to anticipation end also said sure to some as for starting that And we've been have I we're of complete seen when those. the we've year We've wants to have need to the fiscal and we government of benefit delivery make manufacturing

procurement and And have ready we need we need we have to Stockpile to have National the the to to option, sites need Strategic product products. so manufacturer, receive

with unfortunately, having one, sites can things, And two But is control those. back with middle Delta, also out we including are SNS we believe product which being of the those used the up access are that ramping So the to other the available. need some of we sites. materials

to have beginning of certainly year. year providing to but possible. as do is we'll we But the wait at And half now. to planning goal not the right guidance our soon So of and this said as we've provide second that as see, product the and been

keep we'll So that. everyone other Max? Any question on updated

Maxim Jacobs

was Yeah. very helpful. Great. That

So my second has with any cases, of partners TPOXX? monkeypox is question that of international just the discussions kind about stockpiling the accelerated recent

Phil Gomez

yet but I landscape have approval, They the with now that's at But think not in shown regulatory when smallpox, fact prepared increasing on the countries making up look want on about think the if their concern. UK I for for shores, approved has we're we be monkeypox. the Orthopoxviruses. the and that a that something been mitigation sure to Obviously, up the so a interest Yeah, impact are you in monkeypox. shows filed they have with others for concerned and cases

occur think dimension, very an moment it tangible that bring flights any with in country people added has could health at the it's impact it's I that another added in they has urgency and any disease. added coming public really So a

So yes, urgency. I think it has increased

Maxim Jacobs

for questions. Yeah. answering my all That's Thanks I Great. have.

Phil Gomez

you. Thank

Operator

Thank you.

of line Investor. ahead. Private Our Please question the Teddy go comes from next Green,

Your open. line is

Teddy Green

multiple for see to progress questions you. Dan. couple fronts. Phil made the a on Thanks and being for Good I Hi, have report.

first to tied the what EMA, hopeful Max for EMA is how governments So have And what seeing one monkeypox the it's tied has I testimony asked been about approval want into reading end about of prepare future pandemics. into and 'XX. and and 'XX,

identifying obviously, category. to see And things consistent identifying high is, continue it's One Orthopoxviruses, of think basis that possibly specific I on family of I the with instead a viral a fits virus, a into lethality.

approval Africa, it? countries, endemic in So that that a if for starts look you Central European you again, and TPOXX with think really at what has taking Nigeria, do that receive and multiple talk, stockpiling kick Max Medical asked, a do broad and monkeypox in label,

Phil Gomez

working occur think with certainly we been the to educate set we've people I broad Teddy. that natural So Meridian infections of on

making larger approval would So filing our around the been And know it. we've think getting regulatory helpful, disease in the or mentioned, aren't certainly districts. do especially of with I formal countries regulatory approved their I of people some regulatory be of But really are here state. as it is to certainly unless allowed in some aware be Europe, a they which something

seems proved hope viruses effective, to sweet So spectrum with animal models maybe way think difficult. pandemic potential in with that the been expand a get cost exceedingly and viruses, think, to to the also We drug, antiviral always preparedness, very I'd TPOXX of very important. viruses. kind your will efficient, on that there's I spectrum we filings. think certainly that's fits prepare that that's families of we've be drugs for Getting there's that be spot. proved and antiviral effective hope of regulatory a our multiple these really comments be an broad echo you And drugs, the for to

you So that as I'd on point well. with agree

Teddy Green

Okay, good. that. I'm glad glad. That's to hear

Okay.

for foreign and see XXXX. I could the regards gave in Canada color. order. size XXXX I received of know, kind reference in to make orders kind similar release, Another a you And question, more to the to it hard be you press early a it's initial finalizing in do in you to of little

So wanted in courses. XX,XXX Canada, look total the looked clarify. and Canadian way I to I military the it a public order at health just The of from like of

for this at So this is at that foreign time? potential what in jurisdiction we point looking should be

Phil Gomez

because, Yeah, years. - annual and and purchase will we're they're some a we're of some and multi at think before, said countries purchase more for a just do as perspective from purchase that do and delivering, then intonate we've I thinking looking year-by-year, then an ask to will what year deliveries upfront going in it

of it an order think thinking. but of what as So that's we're magnitude more its annual one,

Dan Luckshire

maybe Yeah, -

Teddy Green

sure. with happy be that I'd for

Phil Gomez

Go ahead sorry. I'm Dan,

Dan Luckshire

add color This for this to we So year-by-year. as is an order. tends met a maybe just go to Teddy, more that country

just then had frame so like XXXX those so of million. you X.X And the delivery frame XXXX the orders. in early value is delivery to a for Canada for of X.X was to gives And a reference million, approximately in reference of this

Teddy Green

I actually Okay. what understand delivered. you

Okay.

Dan Luckshire

one a But a highlight has this of just to country year again, this essentially. that regular doing is one thing, orders on the idea history basis, is year a

Teddy Green

understood. Okay,

black adverse And question, nice would be Dennis TPOXX obviously, there anti-viral's and that one approved But and multiple serious smallpox it was great. has does label. Phil, Okay, would obviously, call then two on does for now too. it Tembexa one one label more events the a box in if does, has it are not,

at the the Should with in in look black with two be and again, also one one it and not that general XXX it back different look this antivirus box I progress is the government in was investors XXXX standard warning, look with at tied then what into and or these care is mandated action? two taking - one should on label So that at a point mechanisms time? should of a

Phil Gomez

related on serious in were rabbitpox, nonhuman efficacy comment drug did high and with model pleased any our point. we adverse very events had drug primate And that very just Yeah, it's development. we not a monkeypox. the great rabbits so I'll that have with we and

with determine to the and And what the ultimately, biased, life, I'm are. the good strategies think we we case but but outbreak, certainly I the procurement on are on government drug will where So a very we they and like use work I strategies. drug continue have our

expand to with and And that so we label to continue with continue Orthopoxviruses. to look PEP label expand to other this

we're pre-clinic in And gain doing So said seeking support XXX, before, additional lead stay also before, to that there. government as it program. optimization, we're we've some On tuned on is we - as said some work that.

about look have orphan you bio safety do increased budget, to President's and smallpox, did in efficacy seen and for at an talked As for drugs they they continuing the may and factors.

certainly forward. we're drug another we brought could positioned, well XXX and is we So it's potential that we early, think think believe be but

So remarks I have in we'll opening probably on the as mentioned Dennis next on, call. the

And so provide we also can updates Thanks there. Teddy.

Teddy Green

one, exercises companies all other great. the the And receiving regards I for one time. option to the contract. Okay, second reference final see want XXC don't question. But I to option up in did to take exercise your

in expected to they delivery stated end the that look beginning for it they quarterly would company's I that I a regards the we to think and year. camp, by think original two the up Is the again, government EBS, is still SNS something full from to, going received seems even of to right more like the another know now. I schedule urgency, filings. of have July, the And the bit hopefully at referring what option little know sense contract. the that picking by a you're is in deliver portfolio option maybe can smallpox stand the the in of to last And kind I

Phil Gomez

we're, that have certainly in we're response working and option. to in so we Max, been as I diligently Yeah, need the building working mentioned inventory,

get We I I'd to through And there. it. be to COVID be things and ready work the here line. the across didn't to also can need sure SNS make we if remiss the things final all finish receive shortages is acknowledge to able

fight to we in track. to on stay make sure supply chain little continue our We fires

our least can acknowledge pop days how schedules. chain, of And pandemic that and things been the long these want so be is we supply the up that to going. given far But and in careful at haven't certainly do impact there any

So get as we'll certainly guidance provide closer. we

Teddy Green

you much, great. Okay, Thank guys. so

Operator

Thank you.

Our Hutch next Saunders of Please from comes question Paul Capital. ahead. the with line go

Paul Saunders

my Thanks Dan. Phil Hi, and for question. taking

noticed this at one I it coming quarter X.X seems quick to me, higher threes. was the a SG&A typically for of Just in kind in be million, where a little when

the get just color this forward? So on specifically going And that should is X.X or we just that million a is little to sort forward wanted so of assume should what that caused - quarter what or just of this going uptick? that's or if expect we increase

Dan Luckshire

Yeah. Hi, Paul.

a R&D representing trend. characterize as So it I as SG&A move well as around. would does

I there trend. necessarily starting So that Stay tuned. as not a characterize new would

of If the in it composition history, within on up is has times, you SG&A at popped look to different One deal. within depending sort highlight that little the the thing Meridian includes it SG&A.

Paul Saunders

Got it.

That's I was Okay. what then. missing

Okay, that's helpful.

Operator

Our Instructions] of from Investor. Hearty go next [Operator line question ahead. you. Thank the [ph], Private comes Atone Please

Your line open. is

Unidentified Analyst

and for Phil Thanks, Hi. Dan the information.

private investor, your interested to vision. know I'm a more long-term As

your my are to to from are how industry shares, question same acquire a how next with you to million? my cash on So you your planning question or XX well, of So to part industry to the interested different the your X the reach in going increase repurchasing four you that other - question. you Thanks. besides as know, order Are balance sales in and use within going That's sheet years? billion I'm companies my sales? to

Phil Gomez

to best what's certainly we that cash our have ability question. been and and what question, for we specific, appreciate we we you product. the in generate how for we do on we for we that look long-term, the think you have specific because opportunities. want thank investors do joining a targets about product, revenue with to Hearty, very from great cash, We've asking haven't talked you we an appreciate the And

we business. we opportunities said active program, for do as to the an we do repurchase described, and having grow So that, have share look

our to bind not to would have on into that have We acquisitions that earnings be don't we've a able have ourselves we that for to opportunities specific would circumstance made business. looked don't around that because we targets But make diversify want sense. where deliver

very and with our careful selective very been cash. we've So

grow at would us our business I acquisition look that to we and ways an shareholders, look to diversify. could So to look to cash, say targets we continue return uses for for at provide we opportunity broadly, all it at

a pharmaceutical the We involvement of also growing government the in think there's US industry.

might also there about at expand about thought to us being where we've it. So opportunities we that, be for that. talked But certainly on look we'll disciplined

that look that revenue board broadly, expertise our of we look at where continue a just at accretive share governments a could expertise, So interactions forward. we lot have to with program lot disease we additional infectious talked opportunities, authorized we go of as our when where about. we the add repurchase things And have we'll to and

at So we'll that. to continue look

you for question. thank the So

Operator

questions this time. you. are further there And Thank at no

Phil Gomez

you, and Take today. quarter. you, joining operator for care. next Thank look to We to thank talk everyone forward you

Operator

participation call your that That for thank for does and your conclude conference disconnect you today. you the We ask please lines.

SIGA (SIGA) 8 Aug 212021 Q2 Earnings call transcript