Release Date: March 11, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Have there been any additional deliveries of oral TPOXX in 2025, and can we expect the entire remaining order to be delivered in the first half? A: As of December 31, 2024, there were $70 million in outstanding orders, mostly consisting of oral and IV TPOXX deliveries to the Strategic National Stockpile (SNS). We expect these deliveries to start in the second quarter and all outstanding orders to be completed in 2025. The RFP process is separate from the delivery process under the 19C contract.
Q: With a strong cash balance of $155 million, can we expect another special dividend this year? A: Our capital management strategy is dynamic, balancing short-term and long-term outcomes for shareholders. The timing of special cash dividends is influenced by factors like cash flow performance and market conditions. We anticipate making a capital management decision in the second quarter, consistent with prior years.
Q: Can you provide details on your distribution agreement with Japan Biotechno Pharma and the $11 million international sales in the last quarter? A: The terms of the distribution agreement with Japan Biotechno Pharma have not been disclosed, but it is more efficient financially than previous agreements. The $11 million international sale was to a customer in East Asia, but we are not disclosing the specific customer at this time.
Q: How do you see the mpox opportunity evolving given the PALM 007 and STOMP trial results? A: We are working with NIAID to analyze clinical data from these trials to determine which patients may benefit most from tecovirimat. The trials had limitations and were not designed by SIGA. We will continue to evaluate tecovirimat's potential benefits and design further studies accordingly.
Q: What is the impact of recent NIH funding cuts on your expected RFP for TPOXX? A: SIGA has a long history of collaboration with US government agencies, and we believe national security transcends partisan politics. We are well-positioned to engage with new officials on the RFP for a new TPOXX contract, and any further comment would be speculative.
Q: Where do you stand in the process of re-engaging with BARDA for a new contract? A: We are in ongoing discussions with BARDA and SNS regarding tecovirimat's importance for smallpox preparedness. While specific volume ranges have not been identified, the smallpox threat continues to increase, and discussions on volume requirements are ongoing.
Q: What is the value of the $49 million inventory on your books? A: The inventory includes products to be delivered under the $70 million of outstanding orders and a fair amount of API to ensure responsiveness to future orders. We aim to be proactive in maintaining product availability throughout the supply chain.
Q: Are you considering expanding your portfolio beyond TPOXX? A: Maximizing the TPOXX franchise and pursuing portfolio diversification are priorities. We are actively looking to diversify our pipeline and continue to explore opportunities for expansion in 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.