SIGA Technologies (SIGA) Shares Tumble After Mpox Therapy Fails, Chief Medical Officer Terminated - Hagens Berman

/EIN News/ -- SAN FRANCISCO, Oct. 03, 2024 (GLOBE NEWSWIRE) -- Biopharmaceutical company SIGA Technologies is under intense scrutiny over its prior disclosures regarding the potential expansion of its lead product, TPOXX®, to treat Mpox.

Hagens Berman encourages SIGA Technologies, Inc. (NASDAQ: SIGA) investors who suffered substantial losses to submit your losses now. The firm also encourages persons with knowledge who may assist the investigation to contact its attorneys.

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Investigation Into SIGA Technologies, Inc. (SIGA):

The inquiry centers on the company’s statements about the likelihood of securing FDA approval to broaden the drug’s label. In October 2022, SIGA initiated clinical trials to assess TPOXX®’s safety and efficacy for Mpox treatment in the Democratic Republic of Congo.

SIGA’s CEO, Diem Nguyen, has consistently emphasized the urgent need for effective therapies like TPOXX® in light of ongoing global health threats. However, recent developments have cast doubt on the company's transparency.

On Aug. 15, 2024, the National Institute of Allergy and Infectious Diseases (NIAID) announced that the clinical trial for TPOXX® had failed to meet its primary endpoint. This news sent SIGA's stock price plummeting by nearly 20%.  

In a subsequent move that raised further concerns, SIGA abruptly terminated its Chief Medical Officer, Dr. Jay Varma, on September 23, 2024. The company provided no explanation for the dismissal. This news also sent the price of SIGA shares crashing.

The situation took a more dramatic turn on September 25 when a video surfaced online featuring Varma discussing TPOXX®. While the video’s authenticity and date of recording remain unverified, it allegedly captures Varma making statements that : (1) “[w]e also need to keep up the people’s belief that the drug works[;]” (2) “[s]o that’s why spinning it into the media is helpful[;]” (3) “[y]ou can spin them so that people are [sic] won’t like dump the stock thinking that the company is worthless[;]” and (4) “the people that we need to buy it are not going to be as confident because the data doesn’t look as strong as it would have if we designed it in a different way.” The price of SIGA shares again fell significantly lower that day.

The revelations have had a significant impact on SIGA's stock price and prompted shareholder rights firm Hagens Berman to commence an investigation into possible violations of the U.S. securities laws.

“We are looking into whether SIGA Technologies may have misled investors about TPOXX® efficacy for treating Mpox and additional commercial prospects for it,” said Reed Kathrein, the Hagens Berman partner leading the investigation.

If you invested in SIGA Technologies and have substantial losses, or have knowledge that may assist the firm’s investigation, submit your losses now »

If you’d like more information and answers to frequently asked questions about the SIGA Technologies investigation, read more »

Whistleblowers: Persons with non-public information regarding SIGA Technologies should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email SIGA@hbsslaw.com.

About Hagens Berman
Hagens Berman is a global plaintiffs’ rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman’s team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw. 

Contact:
Reed Kathrein, 844-916-0895