Shares of PharmAthene Inc. (AMEX: PIP), a biodefense company focusing on the development and commercialization of medical countermeasures against biological and chemical weapons, are soaring today.
At last check, PIP shares were trading 45.08% higher at $1.77 on above average volume of 3.15 million.
PharmAthene shares are gaining momentum after a court ruled that the company will get a large share of profit from a smallpox drug made by Siga Technologies.
The Delaware Court of Chancery upheld a judgment it issued against Siga back in September. According to the ruling, PIP will receive 50% of net profit on sales of the drug for 10 years after Siga makes its first $40 million in net profit from sales of the drug.
The drug in question is called ST-246. In 2011, Siga received a supply contract worth $433 million. According to PIP, Siga will deliver the doses early next year. PIP said that it expects to get a substantial share of revenue from those sales.
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