Relenza lifts profit at Biota

Australian drug developer Biota has delivered a full-year net profit of AU$38.2m (£19.3m) boosted by increased demand from governments for its flu treatment Relenza to fight the current pandemic.

The result contrasted sharply with an AU$6.5m loss in 2008.

Total revenues of AU$83.3m (2008: AU$45m) were helped by AU$45m of Relenza royalties; AU$12.6m of collaboration income from licensing agreements with AstraZeneca and Boehringer Ingelheim; AUD$20m from a legal settlement with GSK; and grant income of AU$2.8m from the US National Institutes of Health.

Biota expects Relenza royalties to increase further in this financial year, as GSK said in July that it would increase production capacity of Relenza to 190 million courses by the end of 2009.

"Relenza is now becoming a significant controbutor to global influenza pandemic stockpiles and starting to deliver its potential for shareholders," said Peter Cook, chief executive of Biota.

Biota has reported successful results for its second-generation influenza anti-viral drug, laninamivir in its Phase III trial in Asia. Laninamivir is co-owned with Daiichi Sankyo of Japan.

The clinical trials have also attracted commercial interest from markets outside Japan.

Once the regulatory authorities have approved the drug, Daiichi Sankyo will begin marketing it in Japan, resulting in additional royalties for Biota.

The demonstrated proof-of-concept of BTA798 for the treatment of complications for human rhinovirus (HRV) infection has also attracted interest from a number of companies.

Biota has decided to focus on building a balanced portfolio of anti-invective programmes in various stages of development, and share the development risks through licensing deals.

"Our clinical pipeline has achieved important key milestones this year, in particular through success with laninamivir and the human rhinovirus programme," added Cook.