SIGA Technologies, Inc. (SIGA): Business Model Canvas [11-2024 Updated]
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SIGA Technologies, Inc. (SIGA) Bundle
In the realm of biotechnology, SIGA Technologies, Inc. (SIGA) stands out with its innovative approach to biodefense and public health. The company's business model is anchored by strong government partnerships and a commitment to developing effective treatments like TPOXX®, particularly against smallpox. This blog post delves into the intricacies of SIGA's Business Model Canvas, highlighting key components such as value propositions, customer segments, and revenue streams. Discover how SIGA navigates the complexities of the biotech landscape and secures its position as a leader in biodefense.
SIGA Technologies, Inc. (SIGA) - Business Model: Key Partnerships
Collaborations with the U.S. government, particularly BARDA
SIGA Technologies has established a significant partnership with the U.S. government, particularly with the Biomedical Advanced Research and Development Authority (BARDA). The partnership is primarily centered around the 19C BARDA Contract, which is valued at approximately $602.5 million. This includes a base period of approximately $51.7 million and additional options that may be exercised at BARDA's discretion, which could total up to $519.6 million.
As of September 30, 2024, SIGA has recognized revenues of $22.8 million from oral TPOXX® sales to the U.S. Government under this contract. Additionally, revenue recognized from research and development activities under the 19C BARDA Contract amounted to $3.8 million for the nine months ended September 30, 2024.
Engagements with international distributors like Meridian Medical Technologies
SIGA collaborates with Meridian Medical Technologies under an International Promotion Agreement. This agreement was amended in March 2024 and effective June 1, 2024, allowing SIGA to retain primary responsibility for advertising, promoting, and selling oral TPOXX® globally. Meridian retains limited rights in the European Economic Area, Australia, Japan, and other regions, receiving a fee equal to a high single-digit percentage of the proceeds from sales.
For the nine months ended September 30, 2024, SIGA reported international sales of $11.8 million, with Meridian facilitating a portion of these sales. The fixed term of the current agreement expires on May 31, 2026.
Partnerships with research institutions for drug development
SIGA has engaged in partnerships with various research institutions to advance drug development activities. Notably, the company was awarded a multi-year research contract valued at approximately $27 million from the Department of Defense (DoD) to support label expansion for oral TPOXX®. This contract was fully invoiced by December 31, 2023.
Research and development revenues recognized for the nine months ended September 30, 2024, totaled $3.8 million, primarily derived from activities under the BARDA contract. The partnerships enable SIGA to leverage external expertise and resources, enhancing its capabilities in drug development and regulatory approval processes.
| Partnership Type | Partner | Contract Value | Revenue Recognized (2024) | Duration |
|---|---|---|---|---|
| Government Collaboration | BARDA | $602.5 million | $22.8 million (oral TPOXX® sales) | Ongoing |
| International Distribution | Meridian Medical Technologies | — | $11.8 million (international sales) | Expires May 31, 2026 |
| Research Development | Department of Defense | $27 million | $3.8 million | Fully invoiced |
SIGA Technologies, Inc. (SIGA) - Business Model: Key Activities
Manufacturing and delivery of oral and IV TPOXX®
For the nine months ended September 30, 2024, SIGA generated revenues from product sales totaling $53.5 million, which included $17.6 million from IV TPOXX® and $22.8 million from oral TPOXX® sales to the U.S. Government under the 19C BARDA Contract. Additionally, the company recorded approximately $11.8 million from international sales of oral TPOXX® and around $1.1 million from sales to the Department of Defense (DoD).
As of September 30, 2024, SIGA has delivered a cumulative total of $345.8 million of oral TPOXX® to the Strategic Stockpile.
Research and development for biodefense products
Research and development (R&D) revenues for the nine months ended September 30, 2024, were $3.8 million, compared to $8.5 million in the same period in 2023. This revenue was primarily derived from activities associated with the 19C BARDA Contract.
In July 2019, SIGA was awarded a multi-year research contract valued at approximately $27 million from the DoD for the potential label expansion of oral TPOXX®. The company recognized revenue of $6.4 million under this contract during the nine months ended September 30, 2023, but did not recognize any revenue in 2024 as all available funding was invoiced.
Regulatory compliance and quality assurance processes
Cost of sales and supportive services for the nine months ended September 30, 2024, amounted to $17.2 million, significantly higher than $3.0 million for the same period in 2023. These costs were mainly linked to the manufacturing and delivery of IV and oral TPOXX® under government contracts.
Additionally, selling, general and administrative (SG&A) expenses for the nine months ended September 30, 2024, were $18.2 million, compared to $14.7 million in 2023, reflecting increased international promotion fees and higher compensation expenses.
| Key Activity | Revenue (2024) | Cost of Sales (2024) | R&D Revenue (2024) | SG&A Expenses (2024) |
|---|---|---|---|---|
| Manufacturing and Delivery of TPOXX® | $53.5 million | $17.2 million | N/A | N/A |
| Research and Development | N/A | N/A | $3.8 million | N/A |
| Regulatory Compliance and Quality Assurance | N/A | N/A | N/A | $18.2 million |
SIGA Technologies, Inc. (SIGA) - Business Model: Key Resources
Intellectual property rights for TPOXX®
SIGA Technologies holds significant intellectual property rights related to TPOXX®, an antiviral medication used for the treatment of smallpox. As of September 30, 2024, the cumulative total of oral TPOXX® delivered to the Strategic Stockpile was approximately $345.8 million. This intellectual property is crucial for SIGA's operations, as it enables the company to maintain exclusivity in the production and sale of TPOXX®, thereby securing a competitive advantage in the pharmaceutical market.
Manufacturing facilities and supply chain capabilities
SIGA has established robust manufacturing facilities and supply chain capabilities to support the production of TPOXX®. The company's property, plant, and equipment totaled approximately $1.4 million as of September 30, 2024. For the nine months ended September 30, 2024, SIGA incurred costs of $17.2 million related to the manufacture and delivery of TPOXX®. This capability is vital for fulfilling government contracts, notably under the 19C BARDA Contract, which includes options for significant future procurement, potentially amounting to approximately $519.6 million.
Skilled workforce in R&D and regulatory affairs
SIGA's success is heavily dependent on its skilled workforce, particularly in research and development (R&D) and regulatory affairs. As of September 30, 2024, R&D expenses amounted to $9.0 million for the nine months ended. The company has a team dedicated to navigating the regulatory landscape, ensuring compliance with FDA and other regulatory bodies to maintain the marketability of TPOXX®. This expertise allows SIGA to innovate and respond to market demands effectively.
| Key Resource | Description | Value (as of September 30, 2024) |
|---|---|---|
| Intellectual Property Rights | Exclusive rights for TPOXX® production and sales | $345.8 million in product deliveries |
| Manufacturing Facilities | Facilities supporting TPOXX® production | $1.4 million in property, plant, and equipment |
| Supply Chain Capabilities | Efficient logistics for delivery and procurement | $17.2 million in manufacturing costs |
| Skilled Workforce | Expertise in R&D and regulatory affairs | $9.0 million in R&D expenses |
SIGA Technologies, Inc. (SIGA) - Business Model: Value Propositions
Effective treatment for smallpox and related diseases
SIGA Technologies offers TPOXX®, an antiviral medication approved for the treatment of smallpox and related orthopoxvirus infections. In the nine months ended September 30, 2024, SIGA reported revenues from product sales totaling $53.5 million, with $17.6 million derived from IV TPOXX® and $22.8 million from oral TPOXX® sales specifically to the U.S. Government under the 19C BARDA Contract.
As of September 30, 2024, a cumulative total of $345.8 million of oral TPOXX® has been delivered to the Strategic Stockpile, solidifying SIGA's role as a key player in biodefense.
Strong government contracts ensuring stable revenue
SIGA's business model is heavily reliant on government contracts, particularly with the U.S. Department of Defense (DoD) and the Biomedical Advanced Research and Development Authority (BARDA). For the nine months ended September 30, 2024, SIGA recognized revenues of $22.8 million from oral TPOXX® sales to the U.S. Government.
| Contract Type | Revenue (USD) | Details |
|---|---|---|
| 19C BARDA Contract | $22.8 million | Sales of oral TPOXX® to the U.S. Government |
| DoD Contract #1 | $3.6 million | Firm commitment for oral TPOXX® procurement |
| DoD Contract #2 | $5.1 million | Firm commitment plus an option for additional $5.5 million |
In total, SIGA has captured contracts with potential payments up to approximately $519.6 million for various activities related to TPOXX®.
Commitment to biodefense and public health
SIGA Technologies is dedicated to biodefense, focusing on the development of treatments for infectious diseases that pose a threat to public health. The company's research and development efforts include a multi-year contract valued at approximately $27 million from the DoD to support label expansion for TPOXX®.
The commitment to public health is further demonstrated by the delivery of TPOXX® to the Strategic National Stockpile, with significant quantities already fulfilled and additional contracts in place to ensure future supply.
SIGA Technologies, Inc. (SIGA) - Business Model: Customer Relationships
Long-term contracts with government agencies
SIGA Technologies, Inc. has established significant long-term contracts with various government agencies, notably the U.S. government. As of September 30, 2024, revenues from product sales and supportive services totaled $53.5 million, which included:
- $22.8 million from oral TPOXX® sales to the U.S. Government under the 19C BARDA Contract
- $17.6 million from IV TPOXX® sales to the U.S. Government
- Approximately $1.1 million from oral TPOXX® sales to the Department of Defense (DoD)
In addition to these sales, the company has options under the BARDA contract that could yield up to approximately $519.6 million in future payments for the manufacture and delivery of TPOXX® products.
Ongoing support and communication with healthcare providers
SIGA maintains a proactive communication strategy with healthcare providers to ensure the effective distribution and use of its products. The company’s revenue from international sales amounted to $11.8 million for the nine months ended September 30, 2024, reflecting ongoing international engagement efforts. This engagement includes:
- Regular updates on product availability and new research developments
- Training programs for healthcare providers on the use of TPOXX® products
Moreover, the company has recorded revenues of $3.8 million from research and development activities, primarily under the BARDA contract, reflecting its commitment to ongoing support in healthcare.
Customer engagement through educational initiatives
SIGA engages its customers through various educational initiatives aimed at improving awareness and understanding of its products. For instance, the company has invested in marketing and educational programs that reached over 12 countries, generating $11.8 million in international sales during the nine months ended September 30, 2024. These initiatives include:
- Webinars and workshops for healthcare professionals
- Distribution of educational materials regarding the efficacy and safety of TPOXX® products
In addition, SIGA has a structured approach to customer feedback, which informs product development and marketing strategies, further enhancing customer relationships.
| Contract Type | Revenue (in millions) | Details |
|---|---|---|
| U.S. Government (BARDA) | $22.8 | Oral TPOXX® sales |
| U.S. Government (IV TPOXX®) | $17.6 | Sales under the 19C BARDA Contract |
| Department of Defense | $1.1 | Sales of oral TPOXX® |
| International Sales | $11.8 | Generated from customer engagement initiatives |
| R&D Activities | $3.8 | Revenue from research under BARDA |
SIGA Technologies, Inc. (SIGA) - Business Model: Channels
Direct sales to government entities
For the nine months ended September 30, 2024, SIGA Technologies reported revenues from product sales and supportive services totaling $53.5 million. This includes $22.8 million of oral TPOXX® sales to the U.S. Government under the 19C BARDA Contract, and $17.6 million from IV TPOXX® sales.
In the three months ended September 30, 2024, SIGA recognized $8.1 million from oral TPOXX® sales to the U.S. Government.
Additionally, SIGA has ongoing contracts with the U.S. Department of Defense (DoD), including a third procurement contract signed in August 2024 for approximately $9 million of oral TPOXX®.
International sales through distributors
International sales for the nine months ended September 30, 2024 amounted to $11.8 million, with deliveries of oral TPOXX® to 12 countries. During the three months ended September 30, 2024, international sales were reported at $0.8 million.
Sales under the International Promotion Agreement, effective June 1, 2024, allow SIGA to maintain primary responsibility for advertising and promotion in various regions, while Meridian holds non-exclusive rights in the European Economic Area, Australia, Japan, Switzerland, the UK, and ASEAN member states.
Online channels for product information and updates
While specific revenue figures from online channels are not detailed, SIGA leverages its website and digital platforms to provide product information and updates to stakeholders. The company's strategy includes enhancing online presence to facilitate communication and engagement with customers and partners.
| Channel Type | Sales Amount (2024) | Notes |
|---|---|---|
| Direct Sales to Government | $53.5 million | Includes $22.8 million oral TPOXX® and $17.6 million IV TPOXX® sales |
| International Sales | $11.8 million | Sales across 12 countries |
| Online Channels | N/A | Focus on product information and updates |
SIGA Technologies, Inc. (SIGA) - Business Model: Customer Segments
U.S. government and military agencies
SIGA Technologies primarily serves U.S. government and military agencies, with significant revenue derived from contracts associated with the procurement of TPOXX®. For the nine months ended September 30, 2024, revenues from product sales to the U.S. Government were approximately $40.4 million, which included $22.8 million from oral TPOXX® and $17.6 million from IV TPOXX® sales under the 19C BARDA Contract. Additionally, the Department of Defense (DoD) contributed approximately $1.1 million in sales during the same period.
International health organizations and governments
SIGA also targets international health organizations and governments for its products. For the nine months ended September 30, 2024, international sales of oral TPOXX® amounted to $11.8 million, demonstrating the company's expanding footprint in global markets. The overall international sales for the same period reflect a significant increase, indicating strong demand from various countries.
Healthcare providers and institutions
Healthcare providers and institutions constitute another critical customer segment for SIGA. The company focuses on delivering TPOXX® to healthcare facilities that may require antiviral treatments for viral infections such as smallpox. In the three months ended September 30, 2024, SIGA reported revenues from product sales and supportive services totaling $8.9 million, with a significant portion attributed to healthcare institutions. This reflects the ongoing commitment to provide healthcare solutions in response to potential biological threats.
| Customer Segment | Revenue (9 months ended September 30, 2024) | Key Products | Contracts |
|---|---|---|---|
| U.S. Government and Military Agencies | $40.4 million | IV TPOXX®, Oral TPOXX® | 19C BARDA Contract, DoD Contracts |
| International Health Organizations and Governments | $11.8 million | Oral TPOXX® | International Procurement Contracts |
| Healthcare Providers and Institutions | $8.9 million | IV TPOXX®, Oral TPOXX® | Direct Sales Agreements |
As of September 30, 2024, SIGA had a cumulative total of $345.8 million of oral TPOXX® delivered to the Strategic Stockpile. The company also has multiple ongoing contracts with the U.S. government that specify potential payments up to approximately $602.5 million, highlighting the extensive scope of contracts and potential future revenues from government agencies.
SIGA Technologies, Inc. (SIGA) - Business Model: Cost Structure
Manufacturing costs for TPOXX®
For the nine months ended September 30, 2024, the cost of sales and supportive services was $17.2 million, primarily associated with the manufacture and delivery of IV and oral TPOXX® to the U.S. Government under the 19C BARDA Contract, as well as deliveries to international customers and the Department of Defense (DoD).
In comparison, for the same period in 2023, the cost was significantly lower at $3.0 million, reflecting lower sales volume and a different product mix.
| Year | Cost of Sales ($ million) | Primary Activities |
|---|---|---|
| 2024 | 17.2 | Manufacture and delivery of IV and oral TPOXX® |
| 2023 | 3.0 | Manufacture and delivery of oral TPOXX® |
Research and development expenses
Research and development (R&D) expenses for the nine months ended September 30, 2024, amounted to $9.0 million, a decrease from $13.8 million in the same period in 2023. This decline was primarily due to lower direct vendor-related expenses following decreased activities under the PEP Label Expansion R&D Contract, partially offset by an increase in compensation expenses due to headcount growth.
| Year | R&D Expenses ($ million) | Key Factors |
|---|---|---|
| 2024 | 9.0 | Lower vendor-related expenses |
| 2023 | 13.8 | Higher vendor-related activities |
Selling, general, and administrative costs
Selling, general, and administrative (SG&A) expenses for the nine months ended September 30, 2024, were $18.2 million, an increase from $14.7 million in the same period in 2023. This increase of approximately $3.5 million was attributed to higher international promotion fees and increased compensation as multiple executive officers were hired during the year.
| Year | SG&A Costs ($ million) | Reasons for Change |
|---|---|---|
| 2024 | 18.2 | Higher international promotion fees; hiring of executives |
| 2023 | 14.7 | Lower international sales and promotion costs |
SIGA Technologies, Inc. (SIGA) - Business Model: Revenue Streams
Product sales from TPOXX® to government contracts
For the nine months ended September 30, 2024, SIGA Technologies reported revenues from product sales and supportive services totaling $53.5 million. This includes $22.8 million from oral TPOXX® sales and $17.6 million from intravenous (IV) TPOXX® sales to the U.S. Government under the 19C BARDA Contract. Additionally, there were approximately $1.1 million in oral TPOXX® sales to the Department of Defense (DoD).
| Revenue Source | Amount (in millions) |
|---|---|
| Oral TPOXX® Sales to U.S. Government | $22.8 |
| IV TPOXX® Sales to U.S. Government | $17.6 |
| Oral TPOXX® Sales to DoD | $1.1 |
| Total Product Sales | $53.5 |
Research and development funding from government grants
In terms of research and development activities, SIGA generated $3.8 million in revenue for the nine months ended September 30, 2024. This revenue was primarily earned through activities under the 19C BARDA Contract. Comparatively, for the same period in 2023, the company reported $8.5 million in research and development revenue.
| Year | R&D Revenue (in millions) |
|---|---|
| 2024 | $3.8 |
| 2023 | $8.5 |
International sales of TPOXX® through partnerships
For the nine months ended September 30, 2024, SIGA recorded approximately $11.8 million in international sales of oral TPOXX®. These sales were made to 12 different countries and were facilitated through the International Promotion Agreement.
| Geographical Region | Sales (in millions) |
|---|---|
| International Sales | $11.8 |
Updated on 16 Nov 2024
Resources:
- SIGA Technologies, Inc. (SIGA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of SIGA Technologies, Inc. (SIGA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View SIGA Technologies, Inc. (SIGA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.