lani moving forward , page-7

What I got out of the webcast were:

Expected $52 to $57m in cash by end of 2014 fin year.

Because most/many costs are still out of Australia, they still need to have cash sitting both here and in the US and so the fluctuations in the Dollar have an obvious impact on the cash position at any point in time, but it is swings and roundabouts.

Importantly LANI Trial enrollments are on target. South Africa had a more sever Flu Season than Aust/NZ and they expect Northern Hemisphere season to be Average/Moderate, but still anticipate trial to complete 1st half of 2014.

LANI Phase I/II Trials on 5-16 yr age group and also on Mild to Moderate Asthmatics will begin over the coming few quarters (I had already questioned and got the response that BARDA funding covers these).

Vapendavir. Unfortunately, with our trials to date only about one third of the candidates had the HRV symptoms and therefore, they need more robust/widespread trials and hence the choice between going it alone versus partnering comes into play. Partnering is now on the table - I'm fine with this, but hell, let's get a Johnson & Johnson, or heaven forbid and bite my lip, gggGSK, to partner with us on our terms, get some nice cash up front and move this forward fast.

Speaking of GSK, there have been higher than normal returns of Relenza, hence the low sales and Royalties. Very creative salesmanship I'd say. I just wonder what the go is here? When it comes off patent, do GSK go hammer and tongs just to make another 7% or so, or are they going to drop it (I don't see why) and what of the Stockpile expiry and impending purchases? It's all a bit weird. HHS obviously don't anticipate a Pandemic in the next Flu season - which takes us to 2015 - at which point they will be well and truly over the red line in terms of Relenza expiry. Are they feeling that LANI will just about be ready to go if there is an emergency, or will they start purchasing generic Relenza at that time, with long expiry dates? And will they be pushing for sale or return/credit? All very interesting.

The two questioners on the call were:

Bret Holly - Guggenheim (an analyst that is already on Biota)

Graeme Wald - Bioscience Managers