wilson htm leak possible merger candidates!!

http://www.theaustralian.com.au/business/mergers-acquisitions/biota-considering-merger-after-review/story-fn91vdzj-1226210646725

The Australian
December 01, 2011 12:00AM

Biota considering merger after review

BIOTA Holdings, which earns royalties on influenza drugs, may seek a merger by the middle of next year after a strategic review, Wilson HTM Investment Group says.

Biota hired Piper Jaffray this year to help with the review, including a possible Nasdaq listing and working with "like-minded" US-traded companies to get "direct exposure to the US pharmaceutical and capital markets", chairman Jim Fox told investors at the company's annual meeting on Tuesday.

Biota planned to have a proposal for shareholders by June, he said. Likely merger partners included Cubist Pharmaceuticals, Vertex Pharmaceuticals and Idenix Pharmaceuticals, Wilson HTM said in a report.

It values Melbourne-based Biota at $1.09 a share, or $198 million, based on 181.7 million on issue.

The flu drug Inavir, released in Japan last year, accounted for more than 90 per cent of the valuation, Wilson HTM said.
Free trial

"Whoever merges with Biota has a chance to put their foot on what looks to be a best-in-class influenza drug," Wilson HTM healthcare analyst Shane Storey said. Inavir, licensed to Daiichi Sankyo, is a long-acting drug that accounts for one in four anti-flu medicines sold in Japan.

Additional patient studies, funded by the US government, may enable the medication to be sold there, too.

Biota chief financial officer Damian Lismore declined to comment on the Wilson HTM report, saying he had not seen it.