For the second quarter of 2010, revenues were $4.4 million compared to $4.0 million in 2009, and operating loss was $3.0 million compared to $2.6 million in 2009. Net loss per share for the three month periods ending June 30, 2010 and 2009 was $0.10 and $0.28, respectively.

For the first half of 2010, revenues were $9.5 million compared to $5.9 million in 2009, and net operating loss was $6.0 million compared to $5.5 million in 2009. Net loss per common share was $0.21 compared to $0.47 in 2009.

"We continued to take steps toward our goal of commercializing ST-246(R), as well as make progress in the development of our pipeline of drug candidates. Our Dengue fever, Lassa fever and broad spectrum antiviral programs continue to advance in line with our expectations," stated Ayelet Dugary, SIGA's Chief Financial Officer. "Our laboratory space was recently remodeled with enhanced analytical and screening capabilities that we expect will help accelerate our drug development efforts in the future."

Q2 and First Half 2010 Key Financial Results

Revenues

Revenues from research and development grants and contracts in the second quarter of 2010 were $4.4 million compared to $4.0 million in the second quarter of 2009. The increase of $0.4 million or 11% mainly relates to $0.96 million of revenue generated from our grant and contract for the development of a broad spectrum antiviral drug, an increase of $0.55 million in revenue generated from our grants for the development of drug candidates for arenavirus pathogens, and a decrease of $1.1 million in revenue generated from programs supporting the advanced development of ST-246.

For the six months ended June 30, 2010 and 2009, we recorded revenues of $9.5 million and $5.9 million, respectively, an increase of $3.6 million or 60%. Revenues generated from grants and contracts supporting the development of ST-246 increased $1.7 million, revenues related to our arenavirus pathogen program increased $0.52 million, and $1.3 million of the increase was recognized from our new grant and contract for the development of a broad spectrum antiviral drug.

Research and Development

Research and development expenses in the second quarter in 2010 and 2009 were $4.9 million and $4.7 million, respectively. For the six months ended June 30, 2010 and 2009, we incurred $10.8 million and $7.4 million, respectively, in research and development expenses, an increase of $3.4 million or 46%. For the six-month period, expenditures related to the continued development of ST-246 and its alternative formulations, including costs associated with our commercial validation campaign, increased $1.9 million. Moreover, costs related to the development of our broad spectrum antiviral drug and our arenavirus pathogens programs increased $0.43 million and $0.39 million, respectively.

Selling, General and Administrative Expenses

Selling, general and administrative expenses were $2.2 million compared to $1.8 million in the second quarter of 2009. For the first six months ended June 30, 2010 and 2009, selling, general and administrative expenses were $4.2 million and $3.9 million, respectively. Higher selling, general and administrative costs in 2010 mainly relate to increases in insurance premiums, legal costs, and employee-related expenses including stock-based compensation.

Patent Preparation Expenses

Patent expenses were $0.31 million and $0.63 million for the three and six months ended June 30, 2010, respectively. The increases of $0.22 million and $0.43 million from the comparable periods in 2009 reflect reinforced efforts to protect our lead drug candidates in expanded geographic territories.

Financial Condition and Liquidity

Cash, cash equivalents and short-term investments on June 30, 2010 were $15.3 million, compared to $19.5 million on December 31, 2009. Additionally, our accounts receivable balance on June 30, 2010 was $3.4 million, which is primarily comprised of balances due for expanded research and development activities performed in May and June, 2010.