TWO directors of Melbourne drug developer Biota who oversaw the company's four-year battle with pharmaceuticals giant GlaxoSmithKline have announced they will leave the board following last month's legal settlement.
The legal dispute between the two parties, which arose over GSK's efforts to promote the Biota-developed Relenza antiviral, was settled out of court last month. The settlement will involve GSK paying Biota just $20 million, well short of the $700 million-plus payout Biota had been pursuing.
Company chairman John Grant has announced he will step aside during this financial year after seven years as chairman, while 12-year board veteran Barbara Gibson will retire at the end of December. Mr Grant explained the departures as part of a "board renewal", and the departures are not believed to be in response to calls for changes at the board in the wake of the settlement.
Ian Gust is the only other current board member who was serving during the initiation of the legal action.
BIOTA chief executive Peter Cook has emerged from the company's ill-fated and expensive legal battle with GlaxoSmithKline with his salary intact.
Despite presiding over a 30 per cent fall in revenue to $39 million -- largely due to disappointing sales of the flu drug Relenza -- Cook's remuneration jumped 38 per cent to $833,000 last year. And that doesn't include the 456,300 options that the board approved on August 22, the same day that it signed off on the annual accounts.
