Last close As at 05/08/2026
USD3.15
▲ −0.09 (−2.78%)
Market capitalisation
USD226m
Research: Healthcare
SIGA reported strong Q222 results driven by international expansion and rapid response to the larger than-expected monkeypox outbreak. Q222 product sales of $8.6m increased 24% y-o-y and benefited from two first-time contracts, one in a new Asia-Pacific jurisdiction ($4.8m order) and the other with the US Department of Defense. With $60m in orders received year to date from 10 international jurisdictions (of which c $5m has been delivered in H122), we expect the company to have a strong end to the second half of FY22. Longer term, we see an opportunity for TPOXX to expand its label (to include monkeypox) in North America, which is highly predicated on ongoing clinical success. Considering these developments, our estimates are under review.
Written by
SIGA Technologies |
Best is yet to come |
Q222 update |
Pharma and biotech |
8 August 2022 |
Share price performance
Business description
Analysts
SIGA Technologies is a research client of Edison Investment Research Limited |
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SIGA reported strong Q222 results driven by international expansion and rapid response to the larger than-expected monkeypox outbreak. Q222 product sales of $8.6m increased 24% y-o-y and benefited from two first-time contracts, one in a new Asia-Pacific jurisdiction ($4.8m order) and the other with the US Department of Defense. With $60m in orders received year to date from 10 international jurisdictions (of which c $5m has been delivered in H122), we expect the company to have a strong end to the second half of FY22. Longer term, we see an opportunity for TPOXX to expand its label (to include monkeypox) in North America, which is highly predicated on ongoing clinical success. Considering these developments, our estimates are under review.
Year end |
Revenue ($m) |
EBITDA* |
PBT* |
EPS* |
P/E |
Net cash |
12/20 |
125.0 |
88.6 |
81.5 |
0.81 |
28.8 |
117.9 |
12/21 |
133.7 |
89.7 |
89.1 |
0.91 |
25.6 |
103.1 |
Note: *EBITDA, PBT and EPS (diluted) are normalized, excluding exceptional items and other revenue and expenses.
SIGA reported Q222 revenues of $16.7m (up 93% y-o-y from the Q221 figure of $8.7m), more than half of which was comprised of product sales. The balance consisted of research and development (R&D) related revenues (primarily associated with post-exposure prophylaxis label expansion-related R&D services). Revenues from product sales were attributed entirely to new contract fulfilments, including the company’s first customer in the Asia-Pacific region. Notably, the post-reporting period is anticipated to benefit from regulatory approvals (UK) and rapid international expansion, with anticipated stockpiling of TPOXX as a safety net for the rising threat from the monkeypox outbreak. SIGA has reported c $60m in international orders year to date for oral TPOXX from 10 international jurisdictions (nine of which are new customers), of which $5m was fulfilled in Q222 and roughly $26m is expected to be delivered in Q322 (the remainder between October 2022 and July 2023).
With the rapid rise in monkeypox cases and the recent decision by the World Health Organization to declare monkeypox a ‘public health emergency of international concern’ (refer to our previous note for more details), we expect demand for therapeutics such as TPOXX to intensify as countries stockpile the treatment. It is important to highlight that while TPOXX is approved in the EU and UK for monkeypox (under a broad label that includes all orthopox pathogens), the US and Canadian labels are restricted to smallpox. While the US Centers for Disease Control has made TPOXX available from the strategic national stockpile through expanded access for monkeypox (c 14,000 courses), safety and efficacy data from human studies (current smallpox approval is based on animal studies) is mandated by the US FDA for TPOXX’s label expansion. We believe that after the US government’s declaration of monkeypox as a healthcare emergency (at c 6,600 the US has the highest number of monkeypox cases globally), efforts towards containment and treatment would be expedited, which should benefit SIGA.
SIGA continues to be well capitalized, closing the quarter with a net cash position of $115m after a c $33m dividend payout. Our estimates are under review.
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Research: Industrials
Carr’s Group’s trading update for the 22 weeks ending 30 July 2022 notes that the overall trading performance for FY22 is in line with board expectations so we leave our estimates unchanged. The board states that the strategic review announced in December 2021 is nearing completion and it expects to make a separate announcement soon.