biota to probably be in asx 300, page-15

rumours of us deal a shares tonic Rumours of US deal a shares tonic

February 08, 2006

BIOTA shares surged yesterday amid talk that its board was in the US, working on a major deal.

Shares in Biota, which makes the anti-flu drug Relenza, rose 16c or 11 per cent to $1.61.

While details about the rumour were scant, one market participant said there was speculation Biota's directors were in the US regarding a "possible deal".

A Biota spokeswoman Nerida Mossop said newly appointed CEO Peter Cook was in the US at the Pandemic and Seasonal Influenza Conference.

"That's not surprising given they are one of the only companies in the world that make an influenza drug."



Asked where the other members of the board were, Ms Mossop said: "There's nothing in your rumour."

Still she could not rule out that they were in the US. In fact she couldn't say where they were: "For all I know [chairman John Grant] is playing golf in Melbourne."

Much of Biota's business is in the US. And the man Mr Cook replaced as CEO in December, Peter Molloy, was also based in the US.

Shares in Biota have trebled since July as countries such as France stockpile Relenza due to concerns about bird flu.

Just before Christmas Mr Grant bought 101,000 Biota shares at $1.455 each. Fellow director Professor Ian Gust purchased 20,000 shares at $1.46. And a member of Mr Cook's family picked up 35,000 shares at $1.45.