Every step of the way GSK left Peter Cook and his mates look...

Every step of the way GSK left Peter Cook and his mates look like fools. GSK was willing to settle for $100M + legal costs in 2006 to enable them to expand production capacity rapidly to reap the multi billions $ pandemic stock pile order and increase market share from Tamiflu. Gillead had the foresight to settle but not PC.

Where is the pandemic stock pile market today?

Let the Relenza sale figures be our guiding light. (Sales in Million/ $royalties in millions)
Jun06 ($42M/ M$3.4); Sep06 ($72.3/$5.4); Dec06 ($89.1/$7.3); Mar07 ($220.8/$16; Jun07($158.2/$11.1); Sep07 ($63.9/$4.5); Dec07 ($171.4/ $12); Mar08 ($52.5/ $4.4); Jun08 ($6.2/ $0.4)

Tamiflu sales had plummeted more than 95% from its peak.

Quarterly Relenza sales had plummeted more 97% from $220.8M to $5.2M for which Peter Cook stated it reflected the Northern Hemisphere Off-season. He was hopping all shareholders are stupid enough not to be able to calculate that the Relenza sales had plummeted 96% from the $158.2M June 07 same off-season quarter to the miserable $6.2M June 08 quarter.

Peter Cook and most of the Share Brokers whose reports featured on BTA web site predicted Relenza sales of $20M to more than $35M per annum. This is 50x to 90x the $0.4M achieved in the June 08 quarter!

GSK has made this even more difficult by Relenza using “Call Options” – which means (IF & WHEN) the clients purchase Relenza, it is at a lower price than an outright purchase !! BTA get royalties calculated at a % of the sale price = lower royalties.

Another other method is an out right purchase plus GSK storing the Relenza for the client. The total payment for this method has 2 components; a purchase price and a payment for storage. You don’t have to be a genius to guess GSK will probably distribute as much as possible of the total payment to be the “payment for storage”. Biota will be paid % royalties based on the purchase price and not the total payment. Another possible ground for dispute for the genius Peter Cook to go to court!!

Is this great? At every turn, GSK is marketing Relenza to benefit GSK shareholders!!!