Biota Holdings Limited (ASX:BTA)(PINK:BTAHY) announced that GlaxoSmithKline (LON:GSK) has been awarded a significant contract by the UK Department of Health for 10.6 million treatment courses of RelenzaTM (zanamivir).

Biota notes that the UK Government's decision to purchase zanamivir is consistent with recommendations published by the European Medicines Agency (EMEA) and the UK's Royal Society and Academy of Medical Sciences. Both separately recommend the diversification of antiviral stockpiles to include zanamivir in addition to Tamiflu(R) (oseltamivir), especially with the emerging evidence of resistance.

With this new agreement, the UK becomes the second European country, alongside France, to hold a treatment stockpile sufficient to treat 50 per cent of their population.

Whilst financial terms have not been disclosed, Biota estimates that when the contract is completed, it may represent a royalty income of up to! A$18 million.

About Biota Holdings Limited

Bio ta is a leading anti-infective drug development company based in Melbourne Australia, with key expertise in respiratory diseases, particularly influenza. Biota developed the first-in-class neuraminidase inhibitor, zanamivir, subsequently marketed by GlaxoSmithKline as Relenza.

Biota research breakthroughs have included a series of candidate drugs aimed at treatment of respiratory syncytial virus (RSV) disease, licensed to MedImmune Inc. and novel nucleoside analogues designed to treat hepatitis C virus (HCV) infections, licensed to Boehringer Ingelheim. Biota has clinical trials underway with its lead compound for human rhinovirus (HRV) infection in patients with compromised respiration or immune systems. In addition, Biota has a key partnership with Daiichi-Sankyo for the development of second generation influenza antivirals. Inverness Medical markets Biota's co-developed OIA FLU influenza diagnostics.

Relenza(tm) is a registered trademark of the Gla! xoSmithKline group of companies. BioStar(R) OIA(R) FLU and BioStar(R) OIA(R) FLU A/B are registered trademarks of Inverness Medical.

Biota Holdings Limited