Last close As at 05/08/2026
USD3.15
▲ −0.09 (−2.78%)
Market capitalisation
USD226m
Research: Healthcare
SIGA Technologies announced a strategic step in fortifying its distribution partner, Meridian, allowing greater control over planning and executing its international development efforts, a key growth pillar. The amended terms allow the company to actively manage future promotion activities outside the US (effective 1 June 2024). While Meridian will continue to administer existing international contracts, we expect the renegotiated terms to benefit the bottom line in the medium term as SIGA gains traction internationally. In a separate development, and one that could have a positive read-across for SIGA’s TPOXX, Bavarian Nordic, a key vaccine peer, has commenced the commercial launch of its mpox vaccine Jynneos in the US, which has only been available through the strategic national stockpile to date. We view this as a positive milestone for this therapeutic group and SIGA as TPOXX is the only approved anti-viral treatment for a range of orthopox viruses (including mpox) in Europe and is currently undergoing clinical trials in the US for expansion into mpox (presently approved for smallpox).
Written by
SIGA Technologies |
Positive signals abound |
Strategic update |
Pharma and biotech |
4 April 2024 |
Share price performance
Business description
Analysts
SIGA Technologies is a research client of Edison Investment Research Limited |
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SIGA Technologies announced a strategic step in fortifying its distribution partner, Meridian, allowing greater control over planning and executing its international development efforts, a key growth pillar. The amended terms allow the company to actively manage future promotion activities outside the US (effective 1 June 2024). While Meridian will continue to administer existing international contracts, we expect the renegotiated terms to benefit the bottom line in the medium term as SIGA gains traction internationally. In a separate development, and one that could have a positive read-across for SIGA’s TPOXX, Bavarian Nordic, a key vaccine peer, has commenced the commercial launch of its mpox vaccine Jynneos in the US, which has only been available through the strategic national stockpile to date. We view this as a positive milestone for this therapeutic group and SIGA as TPOXX is the only approved anti-viral treatment for a range of orthopox viruses (including mpox) in Europe and is currently undergoing clinical trials in the US for expansion into mpox (presently approved for smallpox).
Year end |
Revenue |
EBITDA* |
PBT* |
EPS* |
P/E |
Net cash |
12/22 |
110.8 |
43.2 |
43.7 |
0.46 |
21.5 |
98.8 |
12/23 |
139.9 |
84.2 |
87.8 |
0.95 |
10.4 |
150.1 |
12/24e |
190.6 |
104.4 |
108.4 |
1.18 |
8.4 |
166.6 |
12/25e |
169.3 |
96.3 |
100.7 |
1.10 |
9.0 |
192.3 |
Note: *EBITDA, PBT and EPS (basic) are normalized, excluding amortization of acquired intangibles, exceptional items and share-based payments.
The international (ex-US) distribution agreement with Meridian was executed in June 2019 with a five year-term (ending May 2024), allowing Meridian exclusive rights to market, promote and sell oral TPOXX in these markets for a fee equivalent to c 20% of sales. As previously noted, international market traction is a key driver of growth for SIGA, given the increasing awareness of possible biological threats. The company has been a beneficiary of TPOXX government stockpiling including orders in connection with the mpox outbreak in 2022. The recent HERA contract provides another gateway to expand its international footprint. We believe the deal amendment with Meridian provides SIGA with increased independence and oversight on mapping its international efforts, as well as greater control on income generated from the region. However, we note that existing customer contracts will continue to be under Meridian’s administration during the two-year term extension and bottom-line benefits are likely to trickle through in the medium term.
In the other development, commercial availability of the mpox vaccine Jynneos signals a move away from the traditional reliability on government contracts to drive the top line. We believe this has a positive read-across for TPOXX, the only approved antiviral treatment for orthopox viruses. Our prior sensitivity analysis highlighted the potential commercial TPOXX opportunity outside of government stockpiles. Despite waning numbers, we continue to view mpox as a latent threat (average 200 cases/month in the US, with 32,000 cases reported since the 2022 outbreak), highlighting the importance of preparedness. TPOXX was made available to patients under expanded access during the mpox outbreak, and was found to be well-tolerated and effective.
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Research: Healthcare
Sareum Holdings’ H124 results highlighted the company’s swift progress for lead asset SDC-1801, since gaining regulatory approval in Australia to start human studies in mid-CY23. SDC-1801, a TYK2/JAK1 inhibitor targeting the autoimmune space, has reported a good safety profile to date and top-line data for the ongoing Phase Ia study are expected in Q2 CY24, a key catalyst for the company. The TYK2 class’s safety and efficacy has been validated by the likes of Sotyktu and TAK-279, and SDC-1801’s dual inhibition may provide differentiation, in our opinion. Funding, however, remains an overhang (period-end cash of £0.4m; operating loss of c £2.5m in H124) and will likely dictate the timing/pace of the Phase IIa study in psoriasis patients, currently planned for end-CY24. We expect the recent £2.3m capital raise and upcoming tax credits (£0.7m) to offer some headroom but anticipate the need for further funds in CY24.