Siga, Supplier of Only Viable Smallpox Treatment Drug to U.S., Files for Bankruptcy

Siga Technologies Inc., the biological warfare defense firm supplying the only smallpox drug for the U.S. strategic stockpile, filed for bankruptcy to avoid paying a court bond after losing a contract lawsuit and to preserve its ability to make the medicine (In re SIGA Technologies, Inc., Bankr. S.D.N.Y., 14-12623, petition filed 9/16/14).

The filing allows Siga to challenge an expected damages award to competitor PharmAthene Inc. of as much as $232 million without posting the bond, Siga said in a Chapter 11 petition Sept. 16 in Manhattan bankruptcy court. The move ensures Siga can continue supplying the ...