biota to probably be in asx 300, page-17

gsk breach of contract 1. Garnier sank Relenza in 2001, withdrawing advertising, production, prophylactic use approval, IV delivery testing etc.

2. GSK contract said they were to use their "best endeavours" in marketing.

3. Look at their comments belittling the value of Relenza in the Victorian Supreme Court documents.

4. Unequivocal breach of contract deserving of cancellation by BTA.

5. Unfortunately, when you let a 500 lb gorilla into your house he gets to sleep anywhere he likes. BTA appears unwilling to upset the status quo - through lack of gumption or lack of alternative production contacts. This would be reinforced for example if they gave GSK a chance at LANI next year.

6. Garnier already announced a 20 M course production in France last November allegedly to be made over the course of 2006. At Davros recently they said they would make 15 M courses over 2006. We already know Relenza deliveries are due in Australia and Hong Kong in March and April this year. They do not make the drug in serial production runs but as a single run and so all the product will be ready at that time meaning all 20 M courses were made in 4-5 months. Thereafter production will increase due to the expanded capacity. GSK have been deliberately making smokescreens. You will note the Davros report, although widely disseminated, came from a single source ie no other witness so easily denied if necessary as a misunderstanding.

7. BTA should go for the full $430 M settlement and not accept anything less.