GSK is in big trouble with this litigation and they know it. In the meantime they are trying to win time but there is no way out for them. The current stockpiling without any promotion on the part of GSK is enough prove that Relenza is a good product and sells itself even without promotion and the neccesary stock levels on the shelves.
It has been a disgrace on the part of GSK and with no doubt they will have to pay up. I still believe that we will see an out of court settlement but maybe not as fast as we would all like to see this happen. I also believe that $100 million will be a very conservative figure and that the final outcome will be substancial higher either in cash or in conjunction with higher royalties for Relenza.
The new CEO of Biota is a very positive factor for the litigation and could mean an easier (read face saving) mediaton on the GSK side.
Looking beyond the mediaton we will receive far more stockpile orders of Relenza in the near future then happened so far. We are at the moment waiting on the confirmation of the quantity of orders from the following countries:
USA Australia Holland Canada Spain Belgie Japan
and these are just the ones we know about, how many orders are still not in the open???
Besides Relenza and looking furter in the future, I believe that we can all agree that the market of antivirals has never looked better. This will be very beneficial for biota with the new Blockbuster Relenza drug being made ready for clinical trials.
At the moment we can see that the share price has found a strong floor in the $1.40 level. But where will we go from now?? Would it be wise to sell and buy back at even cheaper levels or are we risking missing the boat???
Anyone who have followed this stock should be aware of the fact that with only one announcement of a large stockpiling order the shares of Biota will sky rocket. We are waiting for enough confirmations at this point to see this happen any day imho.
And for those who believe that this is only a tempory place in the spotlight for Biota, the experts have news and believe that we will be relying on antivirals like Relenza for years to come.
The latest news of companies other then GSK producing Relenza will only mean more royalties for Biota and are excellent news.
I am a happy holder and look forward to more news that will catapult this share once again above the A$2 and higher.
jojo
BTA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held