This has been a great week in the markets for the discretionary trust and super fund that I manage. Netflix, CV Therapeutics and now Biota have all had strong moves due to earnings, takeover and $18 Million Relenza royalties for Biota.

UK GOVERNMENT ORDERS 10.6 MILLION COURSES OF RELENZA
Melbourne, Australia – 30 January 2009
Biota Holdings Limited (ASX: BTA) today announced that GlaxoSmithKline (GSK) has been awarded a significant contract by the UK Department of Health for 10.6 million treatment courses of RelenzaTM (zanamivir). 

Biota notes that the UK Government’s decision to purchase zanamivir is consistent with recommendations published by the European Medicines Agency (EMEA) and the UK’s Royal Society and Academy of Medical Sciences. Both separately recommend the diversification of antiviral stockpiles to include zanamivir in addition to Tamiflu® (oseltamivir), especially with the emerging evidence of resistance.

With this new agreement, the UK becomes the second European country, alongside France, to hold a treatment stockpile sufficient to treat 50 per cent of their population. Whilst financial terms have not been disclosed, Biota estimates that when the contract is completed, it may represent a royalty income of up to $18 million. 

Looking back at my rough valuation of Biota I had $20M as the high total for 2009 in Relenza royalties. Nice to get most of that in one transaction. 

CV Therapeutics Statement on Unsolicited Proposal From Astellas

After careful deliberation, with the assistance of its financial and legal advisors, the CV Therapeutics board of directors had, on November 21, 2008, concluded that the Astellas proposal was not in the best interests of CV Therapeutics and its stockholders. Dr. Louis Lange, chairman and chief executive officer of CV Therapeutics, sent a letter dated November 21, 2008 to that effect to Astellas on behalf of the board of directors of CV Therapeutics.

 

Because Astellas, by its recent announcement, has sought to revive its previously rejected proposal, the CV Therapeutics board of directors will again review developments in the context of the company’s strategic plans and the long-term interests of its stockholders, to pursue the best course of action to maximize long-term value for stockholders. As part of its ongoing review of the current market environment and the recent developments relating to CV Therapeutics, the board of CV Therapeutics concluded that it was in the best interests of CV Therapeutics and its stockholders to extend the expiration date of its shareholder rights plan from February 1, 2009 to February 1, 2010. CV Therapeutics will keep its stockholders advised.

Related posts:

1. Gilead tops Astellas offer for CV Therapeutics
2. Talk to me CV Therapeutics Board! I’m the Owner
3. Biota Hits Ball Out of Park
4. Netflix Q4 Profit Surges 45%
5. Rearranging the Deck Chairs on the Titanic
6. Biota Relenza Royalties and Production Update Overnight