Biota may up claim against GSK

Australia's Biota, the developer of the influenza drug Relenza (zanamivir) licensed to UK drug giant GlaxoSmithKline could increase its claim for damages from the latter regarding its alleged failure to properly develop, promote and support the product. Last year, the Supreme Court of Victoria, Australia, set a trial date of April 1, 2008, for the long-running dispute between the two firms (Marketletter September 4, 2006).

In 2005, Biota claimed damages for lost royalties on Relenza sales of A$308.0-A$430.0 million ($249.0-$348.2 million) but, following a two-year review of more than 200,000 GSK documents, says it has now filed an amended Statement of Claim with the Victoria court, which provides great detail of its allegation that the drug major consistently mismanaged its legal obligation to develop and market Relenza. The product, it notes, is one of only two specific anti-influenza drugs recommended by the World Health Organization for global stockpiling to protect against pandemic influenza, including Avian flu.

"In 2004 Biota sued GSK over its failures with Relenza because we were convinced this was the only way to retrieve the value inherent in the product for our shareholders," said Peter Cook, chief executive of Biota, adding: "in the meantime, this has been compounded by GSK's failure to properly tackle worldwide concerns over the threat of avian flu."