Q1 2025 SIGA Technologies Inc Earnings Call
Operator: Good afternoon.
Good afternoon, and welcome to see got technology business update call.
Operator: Welcome to SIGA Technology Business Update Call. Before we turn the call over to SIGA Management, please note that any forward-looking statements made during this call are based on management's current expectations and observations and are subject to risks and uncertainties that could cause actual results to differ from the forward-looking statements. SIGA does not undertake any obligation to update publicly any forward-looking statement to reflect events or change circumstances after this call.
Before turning the call over to Seeger management piece any forward looking statements made during this call are based on management's current expectations and observations and its future risks and uncertainties.
Actual results to differ from the forward looking statements see God does not undertake any obligation to update publicly any forward looking statement Jewish like events or changed circumstances. After this call for.
Operator: For discussion of factors that could cause results to differ, please see the company's filings with the Securities and Exchange Commission, including, without limitation, the company's annual report on Form 10-K for the year ended December 31, 2024. and his subsequent reports on Form Thank You and Form 8.
For a discussion of factors that could cause I was supposed to differ please see the company's filings with the securities and Exchange Commission, including without limitation. The company's annual report on Form 10-K for the year ended December 31 2024.
Speaker Change: And its subsequent reports on Form 10-Q, and form 8-K with that I will now turn the call over to them when it looks like the opposite of Sia Zim.
Diem Nguyen: With that, I will now turn the call over to Diem Nguyen, Chief Executive Officer of SIGA. Diem? Good afternoon, everyone, and thank you for joining today's call and review of our business results for the first quarter of 2025. I am joined by Dan Luckshire, our Chief Financial Officer, and we appreciate this opportunity to provide an update on our company. After the update, we'll be happy to answer your questions.
Yeah.
Speaker Change: Good afternoon, everyone and thank you for joining today's call and review of our business results for the first quarter of 2025, I am joined by Dan Luck Shire, Our Chief Financial Officer, and we appreciate this opportunity to prove.
Speaker Change: I had an update on our company.
Speaker Change: After the update will be happy to answer your questions.
Diem Nguyen: I'm pleased to share that SIGA has continued its momentum from 2024 into 2025, and we expect many bright spots ahead. SIGA has made steady progress on its key initiatives, taking thoughtful and proactive steps to reinforce our position as a leader in global health security and to deliver long-term value to our shareholders. While we are encouraged by this progress, we remain focused on navigating the evolving landscape and staying disciplined in our approach to drive sustained performance. In the first quarter, product revenues were approximately $6 million, which is attributable to a sale to a repeat international customer in a different geographical region from where we made an $11 million sale in the fourth quarter.
Speaker Change: I'm pleased to share that she has continued its momentum from 'twenty to 'twenty four it into 2020 five.
Speaker Change: We expect many bright spots ahead.
Speaker Change: He has made steady progress on its key initiatives, taking a thoughtful and proactive steps to reinforce our position as a leader in global health security.
Speaker Change: The library long term value to our shareholders.
Speaker Change: While we are encouraged by this progress we remain focused on navigating the evolving landscape and staying disciplined in our approach to drive sustained performance.
Speaker Change: In the first quarter product revenues were approximately $6 million, which is attributable to sell to repeat international customer in a different geographical region for from where we made it an $11 million sell in the fourth quarter.
Diem Nguyen: This highlights the broadening scope of our international business. Since we assumed responsibility for international marketing for Meridian Medical Technologies in June 2024, we have been strengthening our relationships with existing and prospective customers and engaging in productive discussions on health security and stockpiling. For those keeping track, we now have regulatory approvals for TPOCs in the U.S., Canada, Europe, the U.K., and most recently, in Japan. We expect the six million dollar international sale in the first quarter to be the start of a substantial product sales over the next few months.
Speaker Change: This highlights the broadening scope of our international business.
Speaker Change: Since we assumed responsibility for international marketing for Meridian Medical technologies and June 'twenty 'twenty, four we have been strengthening our relationships with existing and prospective customers and engaging in productive discussions on health security and stockpiling.
Speaker Change: For those keeping track, we now have regulatory approvals for two parks in the U S, Canada, Europe, the U K and most recently in Japan.
Speaker Change: We expect the 6 million dollar international sales in the first quarter to be at the start of a substantial product sales over the next few months.
Diem Nguyen: On the U.S. side of our business, as of the end of 2024, we had about $70 million of outstanding teapot orders for delivery to the U.S. Strategic National Stockpile, or SNS, of which approximately $53 million of oral teapots and approximately $9 million of IV teapots were delivered in April. Additional amounts of IV teapots are expected to be delivered by the end of third quarter this year.
Speaker Change: On the U S side of our business as of the end of 'twenty 'twenty four we had about $70 million of outstanding T parts of orders for delivery to the U S strategic national stockpile our SLS.
Speaker Change: Of which approximately $53 million of oral <unk> pox, and approximately $9 million of IV to pox were delivered in April.
Speaker Change: Additional amounts of IV chip costs are expected to be delivered by the end of third quarter. This year.
Diem Nguyen: Notably, in March, the U.S. government exercises option under the current 19C contract to procure an additional $26 million of IV T-pox, which we expect to be delivered in 2026. Also, the government modified our current agreement to add $14 million of funding to support manufacturing activities, which will occur over the next two to three years. We believe the U.S. government's decision to exercise the IV procurement options and to provide funding support for IV manufacturing activities underscores the critical importance of maintaining a full complement of TPOX formulations in the stockpile as treatment options for smallpox. The IV formulation is an important alternative for those who are unable to swallow capsules.
Speaker Change: Notably enlarged the U S government exercise its option under the COVID-19 see contract to procure an additional $26 million of IV Chi Pax, which we expect to be delivered in 2026.
Speaker Change: Also the government modified our current agreement to add $14 million of funding to support manufacturing activities, which will occur over the next two to three years.
Speaker Change: We believe the U S government's decision to exercise the IV procurement option and to provide funding support for IV manufacturing activities underscores the critical importance of maintaining a full complement of T. Pax formulations in the stockpile of treatment options for smallpox.
Speaker Change: The IV formulation is an important alternative for those who are unable to swallow capsules.
Diem Nguyen: Given the severity of this disease, we are encouraged by the U.S. government's ongoing recognition of the critical role of antivirals play in safeguarding national security, and we are proud to support its commitment in strengthening preparedness. Looking forward, as we look beyond our current 19C contract, we remain committed to working alongside the U.S. government to establish a new comprehensive long-term agreement that reflects the value of TPOCs both today and in the future, and importantly, one that would further reinforce the nation's preparedness against bi-terrorism and advance our shared objective of enhancing global health security and public health.
Speaker Change: Given the severity of this disease, we are encouraged by the U S government's ongoing a recognition of the critical role of anti virus play in safeguarding National security and we are proud to support its commitment and strengthening preparedness.
Speaker Change: Looking forward as we look beyond our COVID-19 see contract we remain committed to working alongside the U S government to establish a new comprehensive long term agreement. It reflects the values to pox, both today and in the future.
Speaker Change: And importantly, one that would further reinforced the nation's preparedness against bioterrorism and advance our shared objectives of enhancing global health security of public health.
Diem Nguyen: Switching gears, we continue to advance our late-stage pipeline with TPOC's Post-Explosive Prophylaxis Program for smallpox, or PEP. We continue to collaborate with the CDC in consultation with FDA to complete the analysis of samples collected to support the study's immunogenicity objective. The FDA has actively engaged with us in this program, providing real-time guidance in support of our ongoing efforts. We believe the agency's valuable feedback has strengthened our plan and will help facilitate the regulatory process. The CDC is now finalizing its approach and preparing to analyze our samples with the work expected to be completed during the fourth quarter.
Speaker Change: Switching gears, we continue to advance our late stage pipeline with Teapots post exposure prophylaxis program for smallpox or pets.
Speaker Change: We continue to collaborate with the C. D C in consultation with the F. D. A to complete the analysis of samples collected to support the study's Immunogenicity objective.
Speaker Change: The FDA has actually engage with us in this program, providing real time guidance in support of our ongoing efforts. We believe the agency is valuable feedback has strengthened our plan and will help facilitate the regulatory process.
Speaker Change: The C. D. C is now finalizing its approach and preparing to analyze or samples with a work expected to be completed during the fourth quarter.
Diem Nguyen: We are now targeting an FDA submission of PEP indication for the first half of 2026. At an early stage in our pipeline to PEP, our pediatric program is also progressing well. This effort, in partnership with BARDA, is important as it will address critical unmet need for children too small for the current oral formulation of TPOC. we have manufactured the clinical trial material and preparing to submit an IND in the second half of this year with clinical trial target to be to begin shortly thereafter.
Speaker Change: We are now targeting an S. T a submission of Pep indication for the first half of 2026.
Speaker Change: At an early stage in our pipeline to Pep our pediatric program is also progressing well.
Speaker Change: This effort in partnership with BARDA is important as I'll address critical unmet need for children too small for the current oral formulation of T box.
Speaker Change: We have manufactured the clinical trial material and preparing to submit an R&D in the second half of this year with clinical trial targeted.
Speaker Change: To begin shortly thereafter.
Diem Nguyen: As we continue advancing in our strategic initiatives, we remain focused on delivering value to our shareholders. In that spirit, our Board of Directors recently declared a special cash dividend of $0.60 per share to be paid on May 15. This is our fourth consecutive year of paying special cash dividends and reflects the strength of the balance sheet and the confidence that our Board and management have in the future of the company.
Speaker Change: As we continue advancing on our strategic initiatives, we remain focused on delivering value to our shareholders and that spirit. Our board of directors recently declared a special cash dividend of 60 cents per share to be paid on may 15th.
Speaker Change: This is our fourth consecutive year of paying a special cash dividend reflects the strength of the balance sheet and the confidence that our board and manage it.
Speaker Change: And man its might have been a feature of the company.
Diem Nguyen: As we look ahead to the remainder of the year, we remain committed to maintaining a strong financial foundation and executing on our strategic priorities with discipline. We continue to focus on key areas that have proven successful for us. One, continuing our partnership with the U.S. government. Two, advancing regulatory approvals of TPOCs and new indications. Three, cultivating strategic partnerships to expand global access to TPOCs. And four, leveraging our capabilities to move into complementary therapeutic areas. Antivirals play a vital role together with vaccines by treating patients who have not been vaccinated or who did not benefit from vaccination.
Speaker Change: As we look ahead to the remainder of the year, we remain committed to maintaining a strong financial foundation.
And executing on our strategic priorities with discipline.
Speaker Change: We continue to focus on key areas that have proven successful for us.
Speaker Change: Well I don't considering a partnership with the U S government to advancing regulatory approvals of tape outs of new indications three cold to buy things strategic partnerships to expand global access to T box and for leveraging our capabilities to move into complementary therapeutic areas.
Speaker Change: Anti virus play a vital role together with vaccines by treating patients who have not been vaccinated or who did not benefit from vaccination.
Diem Nguyen: As the risks of emerging infectious disease and bioterrorism threats grow, the dual-pronged approach comprised of vaccines and antivirals is increasingly important. In a comprehensive preparedness plan, strategic stockpiling of antivirals along vaccines is critical to ensuring rapid, coordinated response in times of crisis. Importantly, given our long-standing partnership and history of collaboration between SIGA and the U.S. government, as well as the government's demonstrated commitment to a proactive and robust biodefense strategy, we remain focused on addressing an RFP when issued and subsequently finalizing an agreement.
Speaker Change: As the rest of emerging infectious disease, and bioterrorism threats grow the dual pronged approach comprised of vaccines and anti virals become increasingly important in a comprehensive preparedness plans strategic stockpiling. The anti Virals along vaccines is critical to ensuring rapid coordinated response in times of crisis.
Speaker Change: Importantly, given our long standing partnership and history of collaboration between Seagate in the U S government.
Speaker Change: As well as the government's demonstrated a commitment to a proactive and robust biodefense strategy. We remain focused on addressing an RFP win issued and subsequently finalizing an agreement.
Diem Nguyen: In summary, SIGA has a clear vision for the future. With a sound strategy, disciplined capital management, a valuable TPOC franchise, and a proven track record, we are well positioned to drive progress. We are resolute in executing our plans with precision and urgency, while staying committed to making impactful contributions to global health security and creating value for our shareholders.
In summary, Zynga has a clear vision for the feature.
Speaker Change: With a sound strategy and disciplined capital management, a valuable franchise and a proven track record, we are well positioned to drive progress.
Speaker Change: We are resolute in executing our plans with precision and urgency, while staying committed to making impactful contributions to global health security and creating value for our shareholders.
Daniel Luckshire: With that, I'll turn it over to Dan to review the financial results in more detail. Dan? Thanks, Zim. As noted earlier in the call, SIGA had product sales of $6 million for the three months ended March 31st, 2025. This amount reflects an international sale to a repeat customer. Importantly, we believe this sale represents the start of substantial sales to come in the next series of months. On this point, I would like to highlight that approximately $53 million of oil teapots and approximately $9 million of IV teapots were delivered to the Strategic National Stockpile in April.
Speaker Change: With that I'll turn it over to Dan to review the financial results in more detail.
Speaker Change: Dan.
Speaker Change: Thanks, Dan.
Speaker Change: As noted earlier in the call.
Speaker Change: Net product sales of $6 billion for the three months ended March 31 2025.
Speaker Change: This amount reflects an international sale to a repeat customer.
Speaker Change: Importantly, we believe this sale represents the start of substantial sales to come in the next years and months.
Speaker Change: At this point I would like to highlight that approximately $53 million of oral G pox and approximately $9 million of IV T pox.
Speaker Change: Were delivered to the strategic National Stockpile and April P.
Daniel Luckshire: These April deliveries are expected to be included in the revenue numbers for the second quarter. Additionally, the April deliveries, in combination with incremental IV T-box deliveries targeted for the next series of months, as well as a minor international sale amount, emotively represent the expected full delivery by the end of the third quarter of this year of the approximately 70 million of orders that were outstanding as of December 31st, 2024.
Speaker Change: These April deliveries are expected to be included in the revenue numbers for the second quarter.
Speaker Change: Italy the April deliveries in combination with incremental IV T box delivery is targeted for the next year's a month as well as a minor international selling out cumulatively represent the expected full delivery by the end of the third quarter of this year.
Speaker Change: The approximately $70 million of orders.
Speaker Change: That were outstanding as of December 31, 2024.
Daniel Luckshire: As a supplemental note, the $26 million IV T-PoX that we received in the first quarter of this year is targeted for delivery in 2026. In addition to product-related revenues in the first quarter, the company also had research and development revenues of approximately $1 million. Pre-tax operating loss for the quarter, which excludes interest income and taxes, was approximately $2 million. and net loss for this period was approximately $1 million. In turn, fully diluted loss per share for the three months end of March 31st, 2025 was one cent.
Speaker Change: As a supplemental note the 26 million IV cheap Hawks, who would've received in the first quarter of this year.
Speaker Change: Targeted for delivery in 2026.
Speaker Change: In addition to product related revenues in the first quarter. The company also had research and development revenues of approximately $1 million.
Speaker Change: Pretax operating loss for the quarter, which excludes interest income and taxes was approximately $2 million in.
Speaker Change: Net loss for this period was approximately $1 million.
In turn well we do.
Speaker Change: Diluted loss per share for the three months ended March 31, 2025 was one cent.
Daniel Luckshire: The company continues to maintain a strong balance sheet through an abiding commitment to financial discipline. On March 31, 2025, the company had a cash balance of approximately $162 million and no debt. In recognition of the strength of our balance sheet, as well as the continued confidence in the future of our business, a special cash dividend of 60 cents per share was declared on April 8th for shareholders of record as of April 29th. The Special Cash Dividend will be paid on May 15th.
Speaker Change: The company continues to maintain a strong balance sheet and a binding commitment to financial discipline.
Speaker Change: March 31, 2025, the company had a cash balance of approximately $162 million and no debt.
Speaker Change: In recognition of the strength of our balance sheet as well as the continued confidence in the future of our business.
Speaker Change: A special cash dividend of <unk> 60 per share was declared on April eight to shareholders of record as of April 29.
Speaker Change: The special cash dividend will be paid on may 15th.
Daniel Luckshire: This concludes the financial update.
Speaker Change: This concludes the financial update at this point I'll turn the call back to Sam.
Daniel Luckshire: At this point, I'll turn the call back to Zem. Thank you, Dan.
Speaker Change: Yeah.
Operator: With that, we'd like to open the call up for questions. Thank you.
Sam: Thank you Dan with that we'd like to open the call up for questions.
Sam: Thank you ladies and gentlemen, we will now begin the question and answer session.
Operator: Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press star 4 by the 1 on your telephone keypad. You will hear a prompt that your hand has been raised. And should you wish to cancel your request, please press star 4 by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. One moment please for your first question.
Sam: Should you have a question. Please press star followed by the one on your telephone keypad, you'll hear a problem that you had has been raised and should you wish to cancel your request. Please press star followed by did you if you're using a speaker phone. Please lift the handset before pressing any keys one moment. Please for your first question.
Jyoti Prakash: Your first question comes on the line of Jyoti Prakash from Edison Group. Please go ahead. Hi, good evening and thank you for taking my question. It is good to see the progress made in international sales in the quarter. My first question actually relates to the expected RFP timelines for Peacock. We know that there has been increased uncertainty around the recent policies of the Trump government, but we would appreciate your view on this.
Speaker Change: Your first question comes from the line of Joseph a cash from Edison Group. Please go ahead.
Speaker Change: Hi, Good evening and thank you for taking my question.
Speaker Change: It was good to see the progress made in international sales in the corridor.
Speaker Change: My first question actually relates to the expected artistry timelines.
Speaker Change: Are we know what that there'd be increased uncertainty around the recent policy means you'll be trumped government bonds. We would appreciate your view on this.
Speaker Change: Yeah.
Diem Nguyen: Hi Jyoti, this is Dem, and thank you for your thoughtful questions. It's really nice to hear your voice. I would first like to start with that we've been extremely active with the U.S. government as they have recently taken delivery of the 62 million of TPOX during April. We've also exercised a, they have exercised a procurement option valued at 26 million for the IV TPOX and committed to 14 million of funding to support manufacturing activities. Jyoti, we view these actions as very positive signals for the value of the administration places on national security and antiviral therapies like TPOX.
Sam: Hey, Hi, Joe T. This is Sam and thank you for your thoughtful question, it's really nice to hear your boy.
Speaker Change: I went to first like to start with it we've been extremely active with the U S government as they have recently taken delivery of the $62 million of T box during April.
Speaker Change: Also exercise of compute they have exercised their procurement option valued at 26 million for the IV T Park and committed to a $14 million of funding to support manufacturing activities and go to we view these actions as a very positive signals for the value of the administration places on National security and anti bear a buyer.
Speaker Change: Therapies like P Park.
Diem Nguyen: SIGA regularly engages with leaders at the U.S. Health and Security Agencies, and we will continue to do so as permitted.
Speaker Change: Did you go regularly engages with leaders at the U S health and security agencies, and we will continue to do so as permitted.
Diem Nguyen: When ASPR is ready, we will engage with them, as well as with other senior officials on an RFP for the new TPOC contract. Just as background, SIGA has dedicated efforts for over a decade to support the U.S. government. We have a long history of collaboration with the government agencies. This includes under four administrations, including President Trump. We believe our close and successful collaboration with BARDA on developing an innovative medicine for a deadly disease and the U.S. onshore manufactured T-box is consistent with America's strategy for prioritizing national security for the country. are focused on maintaining our strong partnership that play such an important role in supporting the U.S.
Speaker Change: When Ashford is ready, we will engage with them as well as the other senior officials on an RFP for the new Teapot contract.
Speaker Change: Just as background. So you guys dedicated efforts for over a decade to support the U S. Government, we have a long history of collaboration with a government agency. This includes over this includes under four administration, including President Trump.
Speaker Change: We believe our close and successful collaboration with BARDA on developing an innovative medicine for a deadly disease in the U S. Onshore manufactured T box is consistent with America strategy for prioritizing national security for the country.
Speaker Change: Our focus on maintaining our strong partnership.
Speaker Change: The play such an important role in supporting the U S National Security and we really look forward to working with her leadership.
Jyoti Prakash: national security, and we really look forward to working with their leadership. Thank you, that was quite helpful.
Speaker Change: Okay.
Speaker Change: Hum.
Speaker Change: Thank you that does quite catch one Oh my second question relates to the back to label expansion program, we understand that the sample analysis, but it's to D. C is going well do you love and instead I'm I'm, sorry could you please sort us someday analysis to date.
Diem Nguyen: My second question relates to the PEP Label Expansion Program. We understand that the sample analysis by the CDC is going well. Do you have any interim insights or takeaways for us from the analysis to date? Sure, Jyoti.
Diem Nguyen: We continue to advance our PET program. We believe T-POX has a potential benefit of smallpox patients in a prophylactic situation, very consistent to our mechanism action of the product. As we said previously, we completed FDA's requirement to obtain extended safety data in humans for treatment for 28 days, and we have found the data consistent with prior safety studies. We continue to work on getting the entire set of samples reanalyzed for the JYNNEOS TPOX immunogenicity results. As we mentioned in our prepared remarks, the FDA has actively engaged with us on this program. They have provided real-time guidance, which we believe has strengthened our plan and will help facilitate the regulatory process.
Speaker Change: Sure Jody we continue to advance our pet program, we believe T. Pax has the potential benefit of smallpox patients in a prophylactic setting situation very consistent to our mechanism of action of the product.
Speaker Change: As we said previously we completed fda's requirement to obtain extended safety data in humans for treatment for 28 days and we have found the data consistent with prior safety studies.
Speaker Change: We continue to work on getting the entire set of samples we analyze for the Jennie O T Pax Immunogenicity results.
Speaker Change: As we mentioned in our prepared remarks, the FDA has actively engage with us on this program.
They have provided real time guidance, which we believe is screened in our plan and will help facilitate the regulatory process.
Diem Nguyen: The CDC is now finalizing its approach and preparing to analyze our samples with the work expected to be completed during the fourth quarter. From a timing perspective, we will continue to work toward a supplemental NDA submission, and we are targeting a submission in the first half of 2020.
Speaker Change: The C. D. C is now finalizing its approach and preparing to analyze your samples with the work expected to be completed during the fourth quarter.
Speaker Change: From a timing perspective, we will continue to work towards a supplemental NDA submission and we are targeting a submission in the first half of 2026.
Jyoti Prakash: Great.
Jyoti Prakash: And moving on to the next question, and it was good to see the dividend announcement, particularly given the current macro environment. My question is that SIGA in the past has also undertaken share buybacks.
Speaker Change: Great.
Speaker Change: I'm moving on to the next question and it looked good to see the dividend announcement, particularly given the cut into my good environment. My question is that she got into boss has also wanted to do again and share buybacks.
Jyoti Prakash: Can we expect something similar in the near term from the company to help support investor sentiment?
Speaker Change: Can we expect something similar and then Youre doing some of the company to have support investors' sentiment.
Daniel Luckshire: Jyoti, maybe I'll pass that on to Dan. Thanks, Anne.
Speaker Change: Yeah, maybe I'll pass it on to Dan.
Dan: Thanks Ann.
Daniel Luckshire: So. I think the way to think about this is that as a starting point, we continue to be committed to deploying our capital in ways that we believe will drive the most value. whether that be through dividends, share repurchases, or investing in the growth and innovation that will move our company forward. We do view the special cash dividend of $0.60 per share to be significant and substantial capital management. And we do want to highlight that it does reflect a high degree of confidence. and the future of our business. So the broad stroke is that when we think about capital management broadly, dividends again, share repurchases or investments, you take a broad range of considerations into effect and continue to do that.
Speaker Change: So.
Speaker Change: The way to think about this is that as a starting point.
Speaker Change: We continue to be committed to deploying our capital in ways that we believe will drive the most value.
Speaker Change: Whether that be through dividends share repurchases.
Speaker Change: Investing in the growth and innovation that will move our company forward.
Speaker Change: We do view the special cash dividend of <unk> 60 per share.
Speaker Change: To be significant and substantial capital management.
Speaker Change: And we do want to highlight that it does reflect a high degree of confidence.
Speaker Change: And the future of our business.
Speaker Change:
Speaker Change: Okay.
Speaker Change: As a broad stroke is that when.
Speaker Change: When we think about capital management broadly dividends again share repurchases or investments if we take a broad range of considerations into effect and can you continue to do that that's been our historical practice and will continue to do that.
Daniel Luckshire: That's been our historical practice and we'll continue to do that.
Speaker Change: Okay.
Speaker Change: Okay.
Jyoti Prakash: Great.
Diem Nguyen: And have you seen any impact on your international growth efforts from the tariffs announced by the US government as well as potential reciprocal tariffs? Yeah, I'll take that one too. The short answer is no. Today, the announced tariffs, both in the US and the reciprocal, have not had an impact on any aspect of our business, including international growth efforts. Having said that, the macro tariff environment is unpredictable across all industries, and so we will continue to monitor the environment. Currently, based on what is known right now, we don't expect there will be a significant impact on our business.
Speaker Change: Great and have you seen any impact on your international build as a strong view that as announced by the U S government as well as potential discipline goes Janice.
Speaker Change: Yeah, I'll take that one too.
Speaker Change: The short answer is no.
Speaker Change: You know today the announced tariffs.
Speaker Change: In the U S and the reciprocal.
Speaker Change: I have not had an impact on any aspect of our business, including international growth efforts.
Speaker Change: Having said that the macro tariff environment is unpredictable across all industries and so.
Speaker Change: We will continue to monitor the environment.
Speaker Change: Currently based on what is known right now we.
Speaker Change: We don't expect there will be a significant impact on our business.
Diem Nguyen: I do want to highlight that we believe the importance of our U.S.-based supply chain for our lead product is magnified in this environment, and we do believe we are well positioned to navigate any potential challenges. Okay, that's great.
Speaker Change: A highlight.
Speaker Change: We believe the importance of our U S based supply chain for our lead product is magnified in this environment.
Speaker Change: And we do believe we are well positioned to navigate any potential challenges.
Speaker Change: Okay. That's that's great and I have just one more question and this is related to the modification to the 19 keep on track doing Dude. Additionally, 14 million in funding over the next two or three years can you provide some more details on this njoku.
Jyoti Prakash: And I have just one more question and this is related to the modification to the 19C contract to include additional $14 million in funding over the next 2-3 years.
Diem Nguyen: Can you provide some more details on this new modification? Sure, Jyoti, I'll take that question.
Speaker Change: New modification.
Speaker Change: Sure J D. I'll take that question I want to first and start most by saying at the beginning of this year has been.
Diem Nguyen: I want to first and start by saying the beginning of this year has been a positive and productive year for SIGA. As I mentioned in the prior remarks, we've had active engagement for product delivery of our orals as well as IV. We've had a new exercise option for IV. And the third piece is this $14 million contract modification. This, to me, is a great sign. These are great signs that the current administration believes in the importance of TPOCs. They believe in the importance of TPOCs so much that they are funding a contract modification to provide greater long-term supply chain resiliency.
Speaker Change: A positive and productive year for Sika as I've mentioned in the prior remarks, we've had act.
Speaker Change: Active engagement for product delivery of our oils as well as the IV, we've had a new exercise the option for IV and the third piece of this $14 million contract modification.
Speaker Change: This to me is a great sign these are great signs that the current administration.
Speaker Change: Believes in the importance of T pox, they believe in the importance of T box. So much that they are funding.
Speaker Change: A contract modification to provide greater long term supply chain resiliency.
Diem Nguyen: It will allow us to complete a tech transfer of our IV formulation to a new third-party contract manufacturer. And we believe this support underscores the importance of TPOCs in the stockpile for Americans for the long term.
Speaker Change: It will allow us to complete a tech transfer of our IV formulation to a new third party contract manufacturer.
Speaker Change: And we believe this support underscores the importance of T. Pax in the stockpile for Americans for the long term.
Jyoti Prakash: Thank you, that was very helpful.
Speaker Change: Thank you that was very helpful. No further questions for me. Thank you again.
Operator: No further questions from me. Thank you again. Thank you. Once again, should you have a question, please press star followed by the one on your telephone keypad.
Speaker Change: Thank you once again should you have a question. Please press star followed by one on your telephone keypad.
Operator: There are no further questions at this time.
Speaker Change: There are no further question at this time I would now hand, the call back to them when for any closing remarks.
Diem Nguyen: I would now hand the call back to Zem Nguyen for any closing remarks. Thank you, Ina. I'd like to thank everybody for making time to join us on today's call and for your ongoing interest in SIGA.
Speaker Change: Now I'd like to thank everybody for making time to join us on today's call and for your ongoing interest in Cedar. We look forward to speaking to you again on our second quarter call have a great evening.
Diem Nguyen: We look forward to speaking to you again in our second quarter call. Have a great evening.
Operator: Thank you and this concludes today's call. Thank you for participating. You may all disconnect.
Speaker Change: Thank you and this concludes today's call. Thank you for participating you may all disconnect.
Speaker Change: Okay.
Speaker Change: [noise].
Speaker Change: Sure.