What Siga Technologies (SIGA) Said on Its Q3 Earnings Call

Key Points

• U.S. TPOXX procurement remains uncertain: SIGA expects a new government contract, but the process is slower than anticipated and timing is unclear; the company had no product sales in Q3 after completing its prior contract deliveries in Q2.
• Canada adds a potential revenue stream: A five-year military contract is worth about $9 million in firm commitments, with options bringing the total to approximately $15 million. Deliveries are expected to begin in 2027.
• SIGA posted a Q3 net loss of about $3 million and ended September with $116 million in cash and no debt. It pushed its planned TPOXX preventive-use filing to 2028 after the FDA requested additional validation and laboratory work.

Siga Technologies NASDAQ: SIGA said it continues to expect a new U.S. government procurement contract for its smallpox treatment TPOXX, although the timing remains uncertain after a slower-than-expected contracting process.

The company reported no product sales in the third quarter of 2026, following its final delivery under an existing U.S. government contract in the second quarter. It also announced a Canadian military contract worth up to approximately $15 million and said a planned regulatory filing for preventive use of TPOXX is now expected in 2028.

Chief Executive Officer Diem Nguyen said the company believes a new U.S. contract will be awarded based on discussions with key stakeholders, but added that a case for preparedness does not necessarily translate into predictable procurement.

Canadian contract and U.S. procurement

Siga signed a five-year agreement in October to supply oral TPOXX to Canada’s Department of National Defence. The contract includes approximately $9 million in firm commitments over the first three years and up to $6 million in options that the department can exercise at its discretion.

Chief Financial Officer Dan Luckshire said deliveries under the firm portion are expected to begin in 2027, with an equal number of treatment courses delivered in each of the first three Canadian fiscal years of the contract. Because Canada’s fiscal year runs from April through March, two deliveries could occur in one calendar year, he said.

The agreement is the department’s second TPOXX contract. Its first, awarded in April 2020 for purchases of up to approximately $14 million, was completed in 2025, Nguyen said. Siga is also in late-stage negotiations for another international contract, though management did not provide a timetable or further details.

In the U.S., Siga completed its final product delivery under the BARDA 19C contract during the second quarter. Asked about the potential effect of the U.S. midterm elections, Nguyen said biodefense has historically had bipartisan support and that the company does not currently expect a change in congressional funding direction. She also said Siga does not believe the results will materially affect the new contract process beyond a typical post-election transition period.

Quarterly loss and development update

For the nine months ended Sept. 30, Siga reported approximately $42 million in product-related revenue, including about $26 million from IV TPOXX deliveries to the U.S. Strategic National Stockpile and approximately $13 million in sales to two international customers. Most product revenue was recorded in the second quarter, Luckshire said.

Research and development revenue totaled approximately $7 million for the nine-month period, including about $1 million in the third quarter. Siga reported a third-quarter net loss of approximately $3 million, or $0.04 per diluted share. For the first nine months, net income was approximately $6 million, or $0.09 per diluted share.

The company ended September with approximately $116 million in cash and no debt. Nguyen noted that results can vary substantially from quarter to quarter because of the timing of product deliveries.

On development, Nguyen said Siga expects results from a phase 1 study of a pediatric TPOXX formulation by year-end. The results will inform the program’s next steps.

For its post-exposure prophylaxis program, Siga now expects to file a supplemental new drug application in 2028. Nguyen said the Food and Drug Administration requested additional validation and laboratory work related to planned analysis of immunogenicity samples. She described the delay as disappointing but said it did not change the company’s view of the program’s relevance.

European discussions and leadership

Nguyen said Siga sees increased European focus on biodefense and smallpox preparedness, although approaches and spending priorities vary by country. She said European preparedness has historically centered on vaccines and that Siga is working to support an approach that also includes antivirals.

Asked about the removal of mpox from TPOXX’s European label, Nguyen said the change requires additional discussion in some cases and can affect timing, but the company does not believe it changes the long-term opportunity for smallpox stockpiling in Europe.

Nguyen also said Chief Scientific Officer Dennis Hruby was retiring after three decades at Siga and would continue to support the company in an advisory role.

About Siga Technologies (NASDAQ:SIGA)

SIGA Technologies, Inc is a commercial-stage pharmaceutical company focused on developing and supplying medical countermeasures for high-consequence infectious diseases. Its primary product is TPOXX (tecovirimat), an antiviral medicine developed to treat smallpox. TPOXX targets orthopoxviruses, the virus family that includes variola virus, which causes smallpox, as well as mpox and other related infections.

TPOXX has been approved by the U.S. Food and Drug Administration in oral and intravenous formulations for the treatment of smallpox.

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