Biota to consolidate research to Australia
Biota Holdings, the drug discovery company best known for the discovery of zanamivir, used in flu treatment, and marketed by GSK as Relenza, has said it intends to consolidate all research operations, including its US-based research, into the company's new facility near Monash University, east of Melbourne.
Biota Holdings, the drug discovery company best known for the discovery of zanamivir, used in flu treatment, and marketed by GSK as Relenza, has said it intends to consolidate all research operations, including its US-based research, into the company's new facility near Monash University, east of Melbourne.
The new building, which has a capacity of up to 2,500m2 of office and laboratory space, is nearing completion and all Australian personnel and operations will relocate there during October 2004.
In order to take advantage of the new building's capacity and Australia's lower operating costs, the US research facility in Carlsbad, California, will be closed and all current US-based research programs will also be relocated to Australia.
In 2004, the cost of the US research operations was approximately $7.4m. After allowance for closure and relocation costs, the company anticipates significant ongoing savings by conducting the research in Australia and eliminating the duplication of dual facilities.
'Biota remains committed to Biota Inc and its programs,' said Peter Molloy, Biota's ceo. 'This move will allow those programs to continue more efficiently in Australia and significantly reduce the overall research bill for Biota Holdings. It will also add vital critical mass to our Australian research team, which will be strengthened by the new research activity and additional scientific staff,' Mr Molloy added.
Biota Inc's research is aimed at new therapies for HIV and hepatitis C, based primarily on the Company's proprietary NMAX technology platform. The technology, compounds and patents will remain the property of Biota Inc and the company will continue to operate as a US legal entity, but with its research conducted in Australia under contract to Biota Holdings. The move will not preclude Biota Inc seeking US funding or new pharmaceutical partnerships for its programs.
Dr John Lambert, who has been acting director of research of Biota Inc for the past nine months, will be responsible for the transfer of the Biota Inc programs to the Australian laboratories. 'We are confident that the transfer of the Biota Inc programs to Australia can be achieved without any significant impact on the overall progress of the research,' said Dr Lambert. This transfer is expected to be complete by the end of November 2004.
Biota's ceo and business development function will continue to be based in the US.