biota will enjoy all the spoils-the australian

A very good article by a switched on journo - should trigger some interest.

The Australian - April 6th

"SINCE Biota's mega deal in which US taxpayers will provide $230m to develop Biota's next-gen flu buster, attention has focused on the direct benefit of the cash.

That's fair enough, given that Biota's market cap stood at a mere $190m before Friday's deal, which sees the US Health Department's drug-stockpiling arm sponsor development of Laninamivir (Lani) over five years. A so far overlooked aspect of the deal is that Biota (and Japanese partner Daiichi Sankyo) retain the rights to sell Lani, which under the terms of the deal will be made at a US facility.

Rather than receive a royalty stream Biota (and Daiichi) will enjoy all the spoils. It's conceivable Biota will be able to sell direct to government agencies: in a "bad" year, that's a market worth $US400m ($387m) and in a flu pandemic year it's worth billions.

Much depends on the revenue split Biota agrees with Daiichi Sankyo. In Japan, where Lani is already on the market, Daiichi gets 90 per cent and Biota 10 per cent, so it's only fair that, elsewhere, the split is reversed. Criterion rerated Biota yesterday from a sell to a spec buy at $1.39 and we're comfortable with this".