Biota Hits Ball Out of Park
Biota Holdings Ltd. (Public, ASX:BTA) absolutely smashed investors and analysts expectation with huge Q1 Relenza royalties. The Biota story continues to improve, with this announcement highlighting the potential future stream for what is now considered the best antiviral flu drug on the market.
Relenza Royalty for March 2009 quarter $32.3 million
Biota Holdings Limited (ASX:BTA) today announced that it had received notification from GlaxoSmithKline (GSK) that Relenza sales were $462 million and indicative royalties were $32.3 million, for the three months ended 31 March 2009.
Indicative royalties for the nine months to 31 March 2009 total $36.1 million.
Biota CEO Peter Cook attributed the performance to recent significant orders for pandemic stockpiling from the UK and Japanese Governments.
This fantastic announcement, for Biota shareholders, comes on the back of Biota receiving a speeding ticket from the ASX for the sudden rise in its share price.
The UK and Japanese Government orders appear to be the tip of iceberg, with Canada recently announcing they would more heavily weight Relenza due to the increasing resistance to Roche’s Tamiflu.
Canada will adjust the mix of antiviral drugs in an emergency pandemic stockpile this year, a response to concerns over the vulnerability of the main drug in the arsenal, Tamiflu, to the development of viral resistance.
Supplies of the drug zanamivir — sold as Relenza by GlaxoSmithKline — will be beefed up in the national emergency stockpile…
“I think the general view is that from a scientific perspective, greater diversification [of stockpiles] would be desirable,” says King, director general of the public health agency’s centre for immunization and respiratory infectious diseases.
Latest analyst report from Wilson HTM Investment Group. They have a 12 month price target of $1.38
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