dividends

Posters were discussing a dividend from BTA

Source 2008 Annual meeting

http://www.biota.com.au/uploaded/154/1021453_542008annualgeneralmeetin.pdf

Q: What is the Company’s approach to dividends?

Biotechnology companies are not generally known as significant dividend payers and will rarely compete on a dividend paying basis with a sector, such as banking
for example in paying consistent franked dividends. Investors in biotechnology companies generally seek their return in the form of share price growth.
Biotechnology companies tend to be focused on building an asset. In Biota’s case, the asset is a series of products or programs that are advancing towards market and the significant, but variable, revenue stream from Relenza.

Our primary goal is to grow the sustainable value of Biota through maximising our special skills in drug discovery and development in addressing significant unmet medical needs.

Prudent capital management is an important element in maximising long-term shareholder value. Our cash reserves are an essential element in advancing our clinical programs and deepening Biota’s pipeline.

Directors regularly consider paying a small initial dividend. As Biota is unable to pay franked dividends because of accumulated tax losses, dividends would be
fully taxable in the hands of the recipients. If Biota was going to return excess cash to shareholders, it would be more likely as a capital return, rather than as a dividend.

This year the Company engaged in a share buyback and spent $7.9m, buying shares on-market and cancelling them. This equates to approximately 4 cents per share, or 2.8 cents after tax. The Board and management took the view that
the most efficient use of these funds was to buy back shares and cancel them.

Nevertheless the Board will continue to monitor the Company’s position. Should we come into a position of having excess funds your Board will consider the return of those excess funds to shareholders in a tax efficient manner.