Why SIGA Technologies Stock Is Surging Today?

SIGA Technologies Inc SIGA shares are trading higher after the company announced a $138 million U.S. government contract for oral and IV TPOXX treatment.

The U.S. Department of Health and Human Services exercised procurement options to deliver approximately $113 million of oral TPOXX treatment courses and approximately $25 million of IV TPOXX treatment courses.  

SIGA expects to fully deliver approximately $113 million of oral TPOXX under this order in 2023 and expects to start delivering IV TPOXX in 2024. Before delivery of IV TPOXX under this order, SIGA will be focused on fulfilling delivery obligations under a prior IV TPOXX order.

SIGA's lead product TPOXX also known as tecovirimat and ST-246, is an orally administered and IV formulation antiviral drug for human smallpox disease caused by variola virus. 

TPOXX is a novel small-molecule drug, and the U.S. maintains a supply of TPOXX under Project BioShield. 

The FDA approved the oral formulation of TPOXX for smallpox in 2018, and the IV formulation was approved for the same indication in 2022. 

Price Action: SIGA shares are up 26.9% at $6.46 during the premarket session on the last check Friday.