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SIGA: It's been a roller coaster ride for Siga Technlogies during the lead-up to landing a BARDA contract to supply the US with a reserve of a smallpox vaccine to combat a potential bioterror attack.

It now looks like the final tally is in, and Siga has been awarded the contract - again.

On Friday, Siga announced that it had signed a contract with BARDA to deliver two million courses of its smallpox antiviral vaccine, a five year contract that is worth nearly half a billion dollars. Additional conditions and re-orders could make the duration of the contract worth as much as $2.8 billion.

Not a bad number, given SIGA's current market cap of just over $700 million.

The ultimate awarding of this contract was never really in question, although BARDA did take the necessary steps to ensure that the perception of fairness existed each step of the way.

SIGA jumped by nearly two dollars in the after hours on Friday, and a move to the upside could take place this week as the contract has now been finalized.

Barring any unsuspecting news, SIGA should uptrend to the north side of $15 and some have predicted that the price will surpass $20 once this news was announced.

Worth watching.

Disclosure: No position.

Tradersroom

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