SIGA Technologies, Inc. (NASDAQ:SIGA) Q2 2024 Earnings Conference Call August 1, 2024 4:30 PM ET

Company Participants

Diem Nguyen - Chief Executive Officer
Daniel Luckshire - Chief Financial Officer

Conference Call Participants

Soo Romanoff - Edison Group

Operator

Welcome to SIGA Business Update Call. Before we turn the call over to SIGA management, please note that any forward-looking statements made during this call are based on management's current expectations and observations and are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. SIGA does not undertake any obligation to update publicly any forward-looking statement to reflect events or change circumstances after this call.

For a discussion of factors that could cause results to differ, please see the company's filings with the Securities and Exchange Commission, including, without limitation, the company's Annual Report on Form 10-K for the year ended December 31, 2023 and its subsequent reports on Form 10-Q and form 8-K.

With that, I will turn the call over to Diem Nguyen, Chief Executive Officer of SIGA. Diem?

Diem Nguyen

Good afternoon, everyone, and thank you for joining today's call and the review of our business results for the second quarter of 2024. I am joined by Dan Luckshire, our Chief Financial Officer, and we appreciate this opportunity to provide an update on our company. After the update, we'll be happy to answer your questions.

I am pleased to report that SIGA has continued to generate product revenues that outpaced revenues in the comparable periods last year. Product revenues for the three months and six months ended June 30, 2024, were $21 million and $45 million, respectively. This surpassed product revenues of $1 million and $7 million, respectively, for the periods in 2023. These strong results are reflective of SIGA's staying power.

Our capital management activity over the past several years, including substantial special cash dividends reflects and has been made possible by this strong long-term performance. Our focus on long-term performance is critical due to the nature of SIGA's business and the inherent quarter-over-quarter fluctuations. We believe the financial results for the first six months of 2024 supports an important positive long-term trend. Our sales reflects a diverse mix of oral TPOXX deliveries to the US Strategic National Stockpile, or SNS, the US Department of Defense, and 11 international customers, as well as IV TPOXX deliveries to the SNS.

Looking ahead, we anticipate a continued diversification of our revenue base will be important for maximum long-term performance. Consistent to -- with what we said last quarter, we expect 2024 to be another year of strong product revenues. As a reminder, our 2023 product revenues were the highest achieved over the past five years. Two weeks ago, the US government exercised its procurement option under the 19C BARDA contract for the delivery of approximately $113 million of oral TPOXX. We plan to work with the US government on the timing of delivery and currently anticipate deliveries will begin within the next 90 days. We foresee a meaningful portion of this order will be delivered before year-end, supporting our expectation that product revenues will again be substantial this year.