Apparently this is the problem...
businessweek.com
Ron Perelman Gives Siga A Boost
NOVEMBER 10, 2003
Ronald Perelman is getting into biowarfare defense. Through his investment vehicle MacAndrews & Forbes and TransTech Pharma (controlled by MacAndrews), Perelman will invest $10 million in Siga Technologies (SIGA ), a tiny biotech that is developing oral drugs to prevent and treat diseases, including smallpox and anthrax. The investment, which Siga shareholders have to approve, will give Perelman a 45% stake. Siga rose from 2 on Oct. 6 to 2.32 on Oct. 8 -- when the Perelman news broke. It hit 2.64 on Oct. 14 and is now 2.23.
Peter Cardillo of Global Partners Securities, which owns shares, says this link gives Siga a big boost. He figures the stock will hit 5 in 3 to 6 months. "We will act fast in producing and commercializing biowarfare drugs, which Big Pharma has paid little attention to," says Donald Drapkin, Perelman's top lieutenant and vice- chairman of MacAndrews & Forbes. Drapkin figures Siga's first drug will be out in 18 to 24 months. Last year, the U.S. military granted $1.6 million to Siga to develop a smallpox drug. Siga and TransTech are already working jointly on SARS. Siga was featured in this column on Dec. 23, when it was trading at 1.65. |
