3SOF

GREAT NEWS...But such a gap (more 50% gains) + filled black candle -> prudent...Some traders could take benefits..Waiting for if price doesn't filled the gap..A stock to follow for day-trader

news :
PharmAthene, Inc., a leading biodefense company specializing in the development and commercialization of medical countermeasures against chemical and biological terrorism, announced today that it has been awarded a multi-year contract valued at up to $213 million from the Department of Defense (DoD) U.S. Army Space and Missile Command, for advanced development of the Company's broad spectrum chemical nerve agent prophylaxis, Protexia(R).
"We are extremely pleased to have been chosen by the Department of Defense as the recipient of this important biodefense contract," commented David P. Wright, President and Chief Executive Officer of PharmAthene. "The Department of Defense continues to be at the forefront of the development and procurement of novel therapeutic countermeasures to combat chemical and biological warfare and we are very excited to partner with them to carry out advanced development of Protexia."
Under the contract, PharmAthene will be responsible for the conduct and oversight of all product development activities. The initial stage of development, for which $34.7 million has been allocated, includes manufacturing process development, preclinical safety and toxicity testing, submission of an Investigational New Drug (IND) Application with the United States Food and Drug Administration (FDA), and initiation of a Phase I clinical trial. Following the successful completion of the Phase I clinical trial, the government may exercise its option to fund additional development activities beyond the initial $34.7 million, leading to FDA licensure. The contract also provides the Department of Defense with the option to procure an initial 90,000 doses of Protexia.

That's got to be a breakaway gap

I'm thinking you may be right Terliso.  I am back in this one.  50dma should cross the 200dma very soon.    I think it may pop toward the end of the day, if we get some volume.

I just took a position, there's a bullish cross in the weekly chart.... let's see what it does

Terliso,
Looks good on the 3 magics for the weekly chart  and 50sma is about to cross over on the daily as well.
Definately looks like a G-pattern as well, but technically would have been smoother if the big spike was not on a gap up, G does not like when the pull back breaks below the spike candle (but in this case it never filled the gap, breakaway as you say.)  So the G point should be 1.88, if that breaks to the upside with volume we get the G run.  I may join you, will see how the volume looks in the AM.
Cheers
joe

This just popped up on my filter tonight. Long term resistence is near 1.80.

Couple multi-million $$ grants and a hefty DOD contract this month. Nice developments to help break a resistence zone 

Im likely entering along with you terliso tomorrow, and possibly Joe . 1.60 would be nice 

-fous

Just bought @ 1.74!

Nice intraday run my fellow traders

lets break the 1.89 G point     I am in also

limited order not filled at the beginning (1.69),
in @ 1.88

g point has broken 

Took my profits.... SIGA run almost 40% in 2 days, I will catch on the pullback

Good Trading!

News After Hours, SIGA went up to 2.10$ AH on the news of the 16,5 Million but went down to the 1.70's after the news about the cancelled merger came out!
Curious what it will do tomorrow ...



SIGA Terminates Merger Agreement with PharmAthene, Inc.
Wednesday October 4, 5:10 pm ET

NEW YORK--(BUSINESS WIRE)--SIGA Technologies, Inc. (NASDAQ: SIGA - News) disclosed today that it had terminated its Agreement and Plan of Merger with PharmAthene, Inc., pursuant to the terms of that agreement.


In reaching its decision, the SIGA Board of Directors considered many factors, including recent positive scientific data and the receipt of approximately $27 million in grants for its smallpox and arenavirus programs over the last several months, which amount includes a grant of $16.5 million from the National Institutes of Health also announced today.

Donald Drapkin, Chairman of the Board of SIGA, commented, "SIGA is excited about its future and committed to the development and successful completion of its lead product candidate, SIGA-246, a smallpox antiviral treatment, as well as its other anti-viral and anti-infective programs."

http://biz.yahoo.com/bw/061004/20061004006001.html?.v=1



SIGA Receives $16.5 Million from the NIH to Advance Development of Its Smallpox Drug Candidate, SIGA-246
Wednesday October 4, 5:05 pm ET
Total Funding Awards Received by SIGA since August 2, 2006 Now Exceeds $27 Million

NEW YORK--(BUSINESS WIRE)--SIGA Technologies, Inc. (NASDAQ: SIGA - News) today announced the receipt of a 3 year, $16.5 million contract from the National Institute of Allergy and Infectious Diseases (NIAID) of the National Institutes for Health (NIH), to advance the development of SIGA-246, the company's smallpox drug candidate. The award will support the development of SIGA-246 through the preparation and filing of a New Drug Application with the Food and Drug Administration. The receipt of this award brings the total amount of funding commitments the company has received from various sources since August 2nd to over $27 million.

"We are grateful for the continued commitment of the NIH to the development of SIGA-246," said Dr. Dennis E. Hruby, Chief Scientific Officer of SIGA. "The funding we have received from the NIH, as well as their advice and guidance have been critical to the success of our smallpox drug program to date. We look forward to continue working with the NIH as SIGA-246 advances forward."

In July 2006, SIGA announced the successful completion of its first human clinical safety trial. The preliminary results indicated that SIGA-246 is safe and well tolerated in human volunteers at all tested orally administered doses.

SIGA believes that SIGA-246 is the most advanced smallpox treatment currently in development. It represents a new approach to achieve a novel, orally active, antiviral therapeutic to smallpox. The Centers for Disease Control and Prevention classified smallpox as a Category A agent. It is considered one of the most significant threats for use as a bio-warfare agent due the fact that people in the United States have not been vaccinated against it since 1972. Smallpox is very easily transmitted from person to person, and has high mortality rates (30-60%) with 90% morbidity. At present there is no approved treatment for smallpox that can be safely administered to the general population without significant risk of adverse reactions. "We are committed to continue the development of SIGA-246 and hope to provide a solution to this urgent bio-security need," commented Dr. Hruby.

http://biz.yahoo.com/bw/061004/20061004005992.html?.v=1

That's a bad news right there, wonder what the price will do tomorrow...... I got a limit sell order @ 2.10 this morning & I saw the price went to $1.99 for a while but it went down so I  pulled the trigger right away....

Best of luck for those who still holding it

excuse my ignorance     but I don't see why this would be considered bad news.

I mean it did say that SIGA terminated the merger and not the other way around..........plus the only reason why it did terminate it was because of good clinical results and the recent grants it received.  ARE PEOPLE JUST OVERREACTING TO THIS NEWS???   

I hope this is all just an overreaction in after hours.   

Maybe, I'm also not sure if it's bad news... 
Found this on the yahoo forum (yes I know ...  )



NOW that the planned MERGER with PharmAthene is OFF, the $25 million in cash that was supposed to be raised by a SIGA stock sale is NO LONGER REQUIRED.

In my view, PharmAthene may have been in cahootz with some hedge funds that have driven the price of SIGA down sharply in order to obtain the maximum number of SIGA shares when it would have tried to raise the $25 million required by the merger plan.

NOW, THESE HEDGE FUNDS WILL HAVE TO COVER THEIR SHORT POSITIONS.

And PharmAthene will have to incur the COSTS AND TROUBLES of an IPO in order to go public, which they were going to achieve through the proposed merger with SIGA.

THIS SUGGESTS THAT IF PHARMATHENE STILL WANTS THE MERGER TO TASKE PLACE, THEY WOULD HAVE TO OFFER MUCH MORE FAVORABLE TERMS TO SIGA SHAREHOLDERS.

In other words, the MERGER IS STILL POSSIBLE (albeit much less likely) BUT THEY WILL HAVE TO DROP THE REQUIREMENT FOR THE $25 million in newly raised cash (at least).

In either case, SIGA will gain as the SHORTS COVER and LEAVE.

Moreover, I do believe that the NIH and DOD would like to see an independent SIGA because of the CONVINCING potential of its ANTI-VIRAL DRUGS and because they want to see a variety of diverse suppliers for their BIOSHIELD contracts -- hence the $16.5 million NIH GRANT to SIGA.

ACTUALLY, SIGA's anti-viral treatments have huge potential in fighting a VARIETY OF ACUTE VIRAL INFECTIONS (e.g., SARS, Ebola, bird-flu, etc.). And they may even be effective against chronic viral infections (e.g., HBV, HCV, etc.).

OBVIOUSLY, when SIGA obtains the expected order CONTRACT from the Federal government for SIGA's anti-smallpox treatment, IT WILL BE SEVERAL TIMES LARGER THAT SIGA's CURRENT MARKET CAP, which is only $49 million.

It will all be history soon!!