new deal, page-12

biota shares up on news of collaboration Biota shares up on news of collaboration
December 15, 2005 - 5:29PM

Shares in biotechnology firm Biota Holdings Ltd rose more that four per cent following news of a collaboration with MedImmune Inc to develop a compound to prevent and treat respiratory syncytial virus (RSV) infection.

Biota shares closed six cents or 4.3 per cent higher to $1.47 on Thursday and hit an intraday high of $1.57.

Under the terms of the agreement with the US-based company, Biota will receive an upfront payment of $US5 million ($A6.63 million) and reimbursement of future research and development expenses on the collaborative RSV program.

Biota says it could receive payments up to $US107.5 million based on certain clinical and regulatory milestones and a royalty on sales of a future licensed product brought to market by MedImmune under the agreement.

Biota will have exclusive marketing rights in Australia, New Zealand, China and Southeast Asia including India and Pakistan for potential products developed as a result of the agreement.

MedImmune will have exclusive marketing rights for the products in the US, Europe, Japan and all other countries.

Biota says MedImmune is the world leader in developing medicines for prevention, having developed two preventative therapies including Synagis that prevents serious RSV disease in high-risk infants.

Licensed by the US Food and Drug Administration in 1998, it was the first monoclonal antibody (MAb) approved for an infectious disease.

"Whereas Synagis is an injectable monoclonal antibody approved for RSV prevention in high-risk paediatric patients, the Biota compounds are orally available drug candidates," the company said.

Biota chief executive officer Peter Cook says MedImmune is the ideal partner for its RSV program.

"This is a world class deal that provides affirmation of the commercial value of Biota's respiratory antivirals portfolio," he said.

© 2005 AAP