Biota steps up Glaxo lawsuit

Biota Holdings (ASX:BTA) has filed a statement of claim in the Victorian Supreme Court, moving its litigation against GlaxoSmithKline forward a step.

CEO Peter Molloy, speaking from San Francisco's BIO 2004 conference, said the statement gave particulars about the two causes of action -- breach of contract and breach of fiduciary duty -- in Biota's original writ against GSK.

Biota launched the lawsuit last month, claiming GSK, as its marketing partner, had failed to promote and support Biota's influenza drug, Relenza, in the five years since the drug was launched.

Molloy was upbeat about his presentation at the BIO 2004 business forum, which he said had received "interest from companies which would be very attractive to us as potential partners".

The focus of the presentation was Biota's second-generation neuraminidase inhibitor CS-8958, designed as a longer-acting prophylactic. CS-8958 is being developed under a joint venture with Japan's Sankyo, and has completed initial Phase I tests. Additional Phase I tests, as well as Phase II development, will take place in the next 12-18 months, according to Molloy.

Molloy said the market for neuraminidase inhibitors could approach US$1 billion in four to five years' time when the CS-8958 is due to be launched. He contrasts that with the "doldrums" Biota experienced after the launch of Relenza when GSK allegedly withdrew its promotional support, and when the EU and Japan were experiencing a slow flu season.

He said no similar drugs were under development, and therefore anticipated that Biota's second-generation drug would have no competitors.