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Throughout this edition of Stock Analyzers, we want to bring to your attention otcmkts:siga (Siga Technologies Inc), a stock with the potential for traders and investors. We will discuss its in-depth company information, key market data, and press releases to achieve an overall view of this dynamic stock.
otcmkts:siga primarily specializes in developing and commercializing various solutions to aid serious unmet medical needs and biothreats. The Company’s leading product is Tecovirimat which is also known as ST-246. This is an orally administered antiviral drug that targets orthopoxviruses. This drug is not yet licensed by the U>S Food And Drug Administration. Still, even so, it’s a novel drug currently being delivered to the national stockpile under the project BioShield.
otcmkts:siga A Company Overview
Siga Technologies Inc is a commercial pharmaceutical company and is mainly focused on the health security market. Health security currently comprises of countermeasures, including chemical, biological, radiological, and nuclear attacks. It also delivers vaccines and therapies for infectious diseases. The leading product is tecovirimat, which is an antiviral drug to aid in the treatment of Smallpox.
Currently, the U.S stockpiles 1.7 million courses under the project BioShield. The FDA approved the drug in 2018.
otcmkts:siga is a publicly-traded company and is currently headquartered in New York City and has research facilities in Corvallis, Oregon. The Company has been awarded more than $1.1 billion From the Biomedical Advanced Research And Development Authority of the U.S Government, which is at the commercial stage for development and procurement. The most recent contract was for 1.7 million courses of Smallpox antiviral therapy. In 2011 it was awarded a contract that enabled the delivery of 2 million courses of TPOXX for the strategic stockpile.
The Company has worked closely with the government during its development of TPOXX and has continued cultivating its relationship. The relationship has helped advance the development of TPOXX and enhance the U.S National Health Security against potential smallpox threats.
Siga Technologies have established a large network of over 20 partners, including pre-clinical, clinical, supply, and manufacturing chain, which has supported the development of TPOXX.
Two million courses have already been rolled out for the national stockpile. To aid the development and approval of TPOXX, the first drug to treat a disease no longer exists in the human population. The Company has developed a robust drug, supported by the U.S government, which provides cost-effectiveness and scalability. The Company intends to focus on their relationship and leverage their expertise and structure to support their TPOXX program and additional security opportunities in the future.
otcmkts:siga Key Market Data
(Nasdaq: SIGA) is currently trading at 7.10 and has increased by 2.75% at the time of this write-up. The day range is currently 6.88 – 7.21 with a volume of 258,080. Its PE Ratio is 9.96, and the Company does not offer a dividend yield at this time.
The Company’s earnings are due on May 09 2021, and the total market capitalization is 542,611 million, with an average volume of 235,503.
otcmkts:siga Press Releases
We have collected some of the most dynamic press releases for (Nasdaq: SIGA) to give us an overall view of its activities and direction.
otcmkts:siga Reports Financial Results For December 31, 2020
- Roughly 363,000 courses of TPOXX delivered to the U.S government in 2020
- International contracts arranged for the purchase of roughly $47 million TPOXX since April 2020
Today SIGA released its financial results for the year-end December 31st 2020.
Phil Gomez, CEO commented, That The delivery of approximately 112,000 and 363,000 courses in respect of TPOXX for the U.S national stockpile. The Company can expect to generate roughly $35 million and $133 million from these deliveries.
2020 was the first international contract for oral TPOXX and was awarded by the Canadian military. It was then followed by a procurement award by the Public Health Agency of Canada. The Company looks forward to more expansion of international procurement of TPOXX in the future.
Key Company Activities
- January 2021, the Public Health Agency of Canada organized a contract for oral TPOXX of approximately $33 million within the next five years. The contract was awarded between Siga and Meridian Medical Technologies, Inc under an international agreement. Both parties entered in June 2019.
- During the fourth quarter, Siga delivered roughly 112,000 courses of TPOXX to the SNS. The Company has already achieved $35 million for the delivery.
A further look at 2020
- The Company delivered 363,000 courses of TPOXX to the SNS and generated roughly $113 million in revenue.
- The Company filed for regulatory approval of TPOXX in Europe and Canada; the submission covers Smallpox, cowpox, and monkeypox treatment.
- International delivery of oral TPOXX was made in the second quarter.
- During the first quarter, the Company prepaid a term loan, and accrued interest amount was roughly $87.2 million. Then extinguished the loan.
SIGA purchased roughly 1 million shares of its common stock in the fourth quarter for the full year. This accounts for more than 5% of shares outstanding.
This pandemic has caused disruption and is associated with risks and costs and is expected to continue. Because of this, the Company is actively reviewing business and financial risks and is in constant communication with their government partners regarding their contract timing and execution. The Company has been coordinating with vendors and service providers, which constitute their supply chain, to review actions and risks associated with covid-19. The Company has provided its team with support and resources to ensure the continued success of the Company.
This pandemic has not affected the liquidity position of SIGA. It is not expected to have adverse effects on the company’s financial condition. It might delay the timing of international contracts regarding TPOXX. Because of the governments focusing on the demands of the current pandemic.
The pandemic will not harm the short-term financial results of SIGA. However, at this time, the Company cannot determine the ultimate impact upon the overall markets.
Smallpox has affected humans for thousands of yeaars and is a deadly and disfiguring disease. Smallpox was eradicated in 1980 globally, which resulted from a global immunization, and samples of this disease have been kept for mainly research purposes. Nowadays, there are concerns that Smallpox could be used as a biological weapon.
Vaccines can prevent the disease, but the side effects are high for a routine vaccine for people’s exposure to the smallpox virus.
SIGA Technologies to Host Business Update Call
otcmkts:siga has announced that management will hold a conference call to provide a business update regarding their financial results for the year ended December 31st 2020. The live webcast is available on the Company’s website www.siga.com. You can find it under the events and presentations tab on their investor’s relations page.
There’s No Escaping SIGA Technologies, Inc.’s
When most listed companies have Price to earnings ratios above 21, you will consider SIGA an attractive proposition with a 16.5 PE Ratio. But it would be best if you delved deeper to determine a rational basis for its reduced figures.
Currently, earnings have decreased in SIGA over the past year, far from ideal for potential traders or investors. One of the reasons may be that investors believe SIGA won’t do enough to avoid underperforming in its broader market.
However, if you do like the stock, you will be hoping that it is not the case so that you can pick it up when it’s currently out of favor.
Growth Metrics Concerning PE Ratio
As an investor, you want to see company growth is on track to lag the markets. That is the only time you would be comfortable seeing such a low PE ratio.
Last year the Company decreased its bottom line by 35%. Unfortunately, this has brought the Company right back to where it started three years ago. Its EPS growth was non-existent during that time. Moreover, shareholders would not have been satisfied with the unstable growth rates. The rest of the market is expected to grow by 16% through the next year compared to SIGA’s performance, which is higher than the Company’s medium-term growth rates.
Currently, SIGA’s PE Ratio is below a majority of Company’s. It seems that the majority of investors expect to see limited growth rates continue. Because of this, they are willing to pay a reduced amount for stock.
A company’s PE Ratio should not be considered a defining factor to buy or sell a stock. Still, it is a capable metric of earnings expectations.
The examination of otcmkts:siga has contributed its low PE Ratio to its three-year earnings trends, and they look worse than current market expectations. At this time, investors accept the low PE Ratio as they await a future earnings date. But this may not provide any surprises if their medium-term earnings trend continues. It might be hard to see the share price rise significantly in the future with these circumstances.
SIGA Announces Public Health Agency of Canada Contract
This is the second contract by the Canadian Governmental Agency for Oral TPOXX. otcmkts:siga announced that the contract had been issued to Meridian Medical Technologies, Inc to purchase roughly $33 million TPOXX within five years.
Dr. Phil Gomez, the CEO, commented that they were delighted to coordinate with Canada’s Public Health Agency. To supply TPOXX; this highlights the importance of Smallpox for the military and the general population. The U.S and Canada understand the critical role of potential smallpox outbreaks with the contract’s procurement of TPOXX. The Company will continue to work with our partner Meridian and the Department of Defense to protect the military and populations globally.
With the international sales of TPOXX, Meridian is the counterparty, and SIGA will manufacture and deliver the product. The Company anticipates Canadian regulatory approval between 2021 and 2022.
During May 2019 otcmkts:siga arranged an agreement with Meridian. The agreement states that Meridian will actively promote the sale of oral TPOXX. Throughout international markets to treat Smallpox, except in the U.S., SIGA will own all product and intellectual property rights.
MERIDIAN MEDICAL TECHNOLOGIES, INC.
Meridian is a Pfizer company that has been actively putting emergency care treatment options for the general population and military for over 50 years. The Company is committed to helping defend against life-or-death situations, critical and time-sensitive to provide medical countermeasures to Homeland Security, United States Department of Defense, Emergency Medical Services, and throughout 30 nations globally.
The Company currently holds a federal SAFETY Act designation and certification issued by the Department of Homeland Security for its auto-injectors’ active portfolio. The Safety Act provides critical incentives that include the deployment and development of anti-terrorism technologies by actively providing liability protections for sellers.
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