SIGA Technologies - US exercised (stockpile) options are key catalysts

SIGA Technologies announced that the US Department of Health and Human Services has exercised its procurement options for oral and intravenous (IV) TPOXX, worth around $113m and $25m respectively, for the US national stockpile under the BARDA contract. This a key catalyst for SIGA for FY23 as continued US stockpile renewals are core drivers of the company’s business. SIGA aims for the delivery of oral TPOXX in FY23 and the new IV TPOXX order in FY24 (after meeting order obligations for its previous IV TPOXX order exercised in August 2022, worth $26m). We expect the company’s FY23 and FY24 revenues to continue to be driven by replenishing US government stockpiles and supplemented by incremental international orders. The next growth catalyst for SIGA, in our opinion, could be either additional international orders or an update on the next US government contract, including the possibility of a stockpile expansion.