SIGA Technologies - Momentum building as the year progresses

SIGA Technologies had another strong quarter in Q224, driven by intravenous TPOXX (IVT) deliveries to the Strategic National Stockpile (SNS) and incremental international orders for oral TPOXX. Product revenues of $20.7m (not including the $1.1m R&D income) improved materially from $1.3m in Q223 and comprised $17.6m from IVT sales and $3.1m from international deliveries (including $2.7m under the ASEAN deal). BARDA exercising the remaining $112.5m oral TPOXX option means that top-line momentum will continue into H224. SIGA’s cash position is healthy (post-dividend net cash $107m, no debt) and we expect it to improve further with the upcoming BARDA deliveries (from Q424). We tweak our estimates slightly to reflect the possible timing differences in deliveries and our valuation adjusts from $16.01/share to $15.89/share.