Up 3c already on announcement of Flunet JVoff we go...

Up 3c already on announcement of Flunet JV

off we go !!!!!!

Singas
BIOTA HOLDINGS LIMITED 2003-05-27 ASX-SIGNAL-G

HOMEX - Melbourne

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Biota Holdings Limited (ASX:BTA) announced today that it has signed a
letter of intent with Japanese pharmaceutical company, Sankyo Co, Ltd
("Sankyo") covering Biota's second-generation, long-acting influenza
drugs (FLUNET) and a similar Sankyo compound. The letter of intent
anticipates an agreement that will see the two companies pooling
their long-acting influenza drug pipelines and jointly seeking
development and commercialisation partnerships.

Sankyo is a leading Japanese pharmaceutical company, and has been
co-marketing Relenza(TM) with GlaxoSmithKline (GSK) in Japan for
several years. Sankyo has also developed its own long-acting
neuraminidase inhibitor (LANI) which is already in human clinical
trials. Under the proposed agreement, Biota and Sankyo will pool
their LANI pipelines, cross-license their relevant patents, and share
equally all future licensing and royalty revenues.

"This is an important strategic alliance for Biota," said Group CEO,
Peter Molloy, who noted that discussions have been underway with
Sankyo for several months. "The agreement effectively accelerates our
FLUNET program and gives us a major boost in the partnering process.
It also gives us a potential new source of revenues, bridging our
marketed products (Relenza and FLU OIA(R)) and our discovery stage
programs."

Once the agreement is finalised, the combined pipeline of the
Biota-Sankyo alliance will include Sankyo's LANI compound and Biota's
FLUNET compounds. The Biota compounds are at the predinical stage,
while the Sankyo compound has successfully completed Phase I studies
in Europe. Further Phase I work studies may be required, but subject
to securing a development partner, the Company expects that it could
enter Phase II trials in 2004. The combined portfolio of LANI
compounds will be offered to prospective partners as a joint package.

"We expect it to be an attractive licensing package," said Mr Molloy.
"It combines a strong patent estate, with a suite of compounds, the
first of which is already in human trials. Both parties have been
talking to potential partners about their respective programs. Now we
will pool those prospects and seek to close a development deal
quickly." Under the proposed agreement, the companies will jointly
manage the partnering process, with the intention that all further
clinical development work would be funded by the licensing partners.

The letter of intent provides for a 90-day negotiation period, during
which the companies intend to prepare and execute a detailed
agreement.


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