Shares of SIGA Technologies Inc. (SIGA.US) jumped about 7% in pre-market trading on Friday, with the surge closely tied to an important deal announcement. The U.S. government decided to exercise its option to purchase the company's Tpoxx treatment for $113 million, signaling high praise for the product. At the time of writing, the stock was up 4% to $9.43.
The purchase is part of a collaboration between SIGA Technologies and government agencies such as the Biomedical Advanced Research and Development Authority (BARDA). The U.S. Department of Health and Human Services (HHS) exercised the option to purchase Tpoxx drug for the second time based on a similar order received last year, showing the government's continued demand and trust in the drug.
Tpoxx is an oral antiviral drug that has been approved in the U.S. and Canada for the treatment of smallpox.
SIGA Technologies CEO Diem Nguyen expressed the company's excitement and pride for the deal, saying, "We are pleased to be able to create significant value for our company and shareholders while fulfilling our global public health responsibilities."
The deal not only brings significant financial benefits to SIGA Technologies, but also further solidifies its leadership position in the global public health sector, foreshadowing a bright future for the company.