GSK to wind up Biota hep C partnership

Drug firm GlaxoSmithKline has told the US subsidiary of Melbourne-based Biota Holdings (ASX:BTA) that it will not extend the companies' research collaboration on novel hepatitis C drugs beyond its scheduled expiry date of August 9.

But Biota, which is suing GSK for what it says was a failure to promote and support Biota's influenza drug, Relenza, still stands to benefit from the hepatitis C collaboration after it is wound up.

After August 9, there will be a 12-month evaluation period, after which GSK will decide whether to return all rights to compounds synthesised during the collaboration to Biota, or take them into clinical development. Biota will receive milestone payments and royalties if GSK takes the second option.

GSK contributed more than US$3 million over the two years of the collaboration.

In a statement, Biota CEO Peter Molloy said the collaboration had enabled Biota to build up a significant intellectual property base in the hepatitis C field. "We are confident that the research completed to date will continue to represent significant value for Biota going forward," he said.