Last close As at 05/08/2026
USD3.15
▲ −0.09 (−2.78%)
Market capitalisation
USD226m
Research: Healthcare
SIGA Technologies has announced the formation by the European Commission of a joint procurement mechanism to source oral TPOXX initially involves 13 countries and is open to all countries in the EU and European Free Trade Association (EFTA). This is in anticipation of an initial $18m order of TPOXX in the next 60 days from EU/EFTA member countries; As such, management expects total (global) orders of $164m in FY23. This development allows participating EU/EFTA member countries to acquire courses of oral TPOXX in the near term and efficiently order additional quantities, provided the minimum quantity thresholds are met. While we expect the company’s near-term (H223 and FY24) revenues to be dominated by the replenishment of US government stockpiles, the announced European joint procurement mechanism establishes an important gateway to access an important market and creates longer-term upside revenue potential. Management maintains its FY23 pre-tax operating income guidance of $90–100m.
Written by
SIGA Technologies |
EU gateway to tap into new international orders |
TPOXX update |
Pharma and biotech |
24 October 2023 |
Share price performance
Business description
Analysts
SIGA Technologies is a research client of Edison Investment Research Limited |
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SIGA Technologies has announced the formation by the European Commission of a joint procurement mechanism to source oral TPOXX initially involves 13 countries and is open to all countries in the EU and European Free Trade Association (EFTA). This is in anticipation of an initial $18m order of TPOXX in the next 60 days from EU/EFTA member countries; As such, management expects total (global) orders of $164m in FY23. This development allows participating EU/EFTA member countries to acquire courses of oral TPOXX in the near term and efficiently order additional quantities, provided the minimum quantity thresholds are met. While we expect the company’s near-term (H223 and FY24) revenues to be dominated by the replenishment of US government stockpiles, the announced European joint procurement mechanism establishes an important gateway to access an important market and creates longer-term upside revenue potential. Management maintains its FY23 pre-tax operating income guidance of $90–100m.
Year end |
Revenue (US$m) |
EBITDA* (US$m) |
PBT* |
EPS* |
P/E |
Net cash** |
12/21 |
133.7 |
89.6 |
89.1 |
0.91 |
5.7 |
103.1 |
12/22 |
110.8 |
43.2 |
43.7 |
0.46 |
11.3 |
98.8 |
12/23e |
175.2 |
100.5 |
102.4 |
1.10 |
4.7 |
115.3 |
12/24e |
181.0 |
102.3 |
104.7 |
1.17 |
4.5 |
171.0 |
Note: *Normalised, excluding amortization of acquired intangibles, exceptional items and share-based payments. **Excludes share-based payments.
In this new development, the European Commission has established a joint procurement mechanism under its Health Emergency Preparedness and Response Authority to procure oral TPOXX to combat orthopox viruses, such as smallpox and monkeypox. We note that oral TPOXX is currently the only antiviral approved for treatment of all orthopoxvirus pathogens, including mpox, in both the UK (July 2022) and the European Union (January 2022). As a result, this announcement represents an important stockpiling opportunity for the EU region. So far, 13 member countries from the EU and the EFTA have signed up to procure oral TPOXX but we would anticipate incremental participation from the remaining countries among these groups as the arrangement matures. The participating countries can place oral TPOXX orders at a country level in compliance with the minimum quantity limit.
As per the current operational visibility, we expect H223 sales to be driven by US domestic deliveries of oral TPOXX to the US strategic national stockpile (SNS), IV TPOXX deliveries to the SNS and oral TPOXX to the US Department of Defense. However, we believe international orders have further upside potential and the company’s enhanced sales expansion efforts in the international markets provide the directional growth guidance. Looking ahead to the second half of the year, management maintains its FY23 operating income guidance of $90–100m (we await Q323 results in November).
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Research: TMT
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