The $230m HHS grant came just in time for Biota.That grant to...

The $230m HHS grant came just in time for Biota.

That grant to Biota (a small Aussie Biotech) is more meaningful, given the state of the US economy. Whilst the US Govt are always going to be spending money in the influenza patch, I reckon if Biota were only applying for the funding now, there would be more hoops to jump through (especially given that they are a non-US company) and the figure may not have been as high as it ended up being.

All the more reason why come the time that LANI hits the market, there is no doubt the US govt will be protecting its investment of one quarter of a Billion dollars!

The market is not valuing this grant into the SP because sales are still way off and investors are looking for faster turnarounds of their money. Investors at the moment are extremely picky, looking for companies with positive and serious revenue rolling in. Biota is some years away from this, unless they decide to say the ROW license (which is unlikely). If they do this, the value would have to be north of $250m, but I'm not sure many big pharmas would want to part with this sort of money this far out from LANI hitting the market...especially when they could probably buy the company or a big chunk of it for less.