Smallpox drug maker Siga Technologies Inc. on Wednesday told a judge that without bankruptcy protection, it "would no longer be able to continue its operations,” the Wall Street Journal reported today. Weil Gotshal & Manges LLP's Harvey Miller, a Siga lawyer, called Siga a healthy company that filed for chapter 11 because it can't afford to post the necessary bond that would allow it to appeal a recent court decision over its smallpox drug, Tecoviramat. "Siga believes that it has meritorious and substantial grounds for appeal," Mr. Miller said. Siga filed for bankruptcy on Tuesday, saying the automatic stay provided by the bankruptcy code is the only thing that can prevent it from having to post as much as $200 million related to the loss so it can appeal. Last month, a Delaware corporate-law court found Siga liable to PharmAthene Inc. in a licensing dispute, a decision that could mean a damages award of $232 million or more. The court ruled PharmAthene was entitled to lost profits related to Tescoviramat.
