By moving to the US, The US government will be more confident when placing LARGE orders for Laninamivir because they are buying products that are produced by a US company and in the US.
Political influence will be much of less issue for Biota products selling in the US. Remember why Relenza failed?
There are , of course, many other big advantages for Biota to move to the US.
Imagine what would have happened to Biota if the BARDA funding was not given to Biota? Without the BARDA funding, I do not think PC would be able to get a deal with 7% (the total royalty rate would be 11% if 4% was for DS) royalty for Biota for Laninamivir.
In a word, by moving to the US, it actually implies that current Biota shareholders are presenting their shares for sale in the US. Of course we are hoping to get a better price for our Biota shares in the US.
Since the US government can give $231m to Biota, it indicates that the US needs the product. So, isn't it better for Biota to present itself for sales closer the the US investors?
Just my opinions.
BTA Price at posting:
83.5¢ Sentiment: ST Buy Disclosure: Held
