Stockpile boost for Biota

The UK Government has purchased over 10 million treatment courses of zanamivir, the flu antiviral developed by Biota and marketed by GlaxoSmithKline as Relenza.

The Government also bought an extra eight million courses of oseltamivir, the antiviral marketed as Tamiflu by Roche. Evidence is emerging of resistance to Tamiflu, the market-leading flu treatment.

The purchase means the UK now has enough antivirals stockpiled to treat 50 per cent of its population in the event of an epidemic.

In a statement, Biota said that while the financial terms of the contract have not been revealed, it represents a potential royalty to the Melbourne company of up to $18 million.

Last year, Biota dropped long-standing legal action against GSK for failing to market Relenza properly. The company said it had lost up to $400 million in potential royalties but eventually settled the case for $20 million.

The company is now in Phase III trials of a long-acting neuraminidase inhibitor, developed with partner Daiichi Sankyo, for human and bird flu.