Biota Pharmaceuticals Inc, U.S. Department of Health and Human Services infectious news

Biota will reduce headcount by 50 (67%) to 25 and close its Melbourne facility by June 30, 2015. All of the cuts will come from Australia and the remaining 10 Australian employees will move to Atlanta. Biota’s board adopted the plan after HHS’s Office of the Assistant Secretary for Preparedness and Response (ASPR) and Biomedical Advanced Research and Development Authority (BARDA) terminated a 2011 contract worth up to $231 million to develop the company’s laninamivir octanoate in May. Biota expects the reductions to cut R&D and G&A costs by about $8-$10 million annually (see BioCentury, May 12).

Next quarter, Biota expects to report top-line data from the Phase II IGLOO trial of laninamivir octanoate for influenza A and B infections. Biota and Daiichi Sankyo Co. Ltd. (Tokyo:4568, Tokyo, Japan) developed laninamivir octanoate under a 2003 deal. The second-generation long-acting neuraminidase inhibitor (LANI) is approved in Japan as Inavir to prevent influenza A and B infection. Subject to data from drug-drug interaction and bioavailability studies with vapendavir, the company plans to begin a Phase IIb trial in 4Q14 to treat human rhinovirus (HRV) infection in patients with moderate to severe asthma. Vapendavir is an oral HRV antiviral. ...