Mon Jun 2, 2014 7:04am EDT
<span id="articleText"/>(Adds detail, background, shares)
<span id="midArticle_0"/>June 2 (Reuters) - Biota Pharmaceuticals Inc said it plans to cut its workforce by about two-thirds and shut down its facility in Melbourne, Australia following the loss of a key government contract.
<span id="midArticle_1"/>The Department of Health and Human Services terminated its 2011 contract with the company to provide up to $231 million to support the development of Biota's lead experimental influenza A and B treatment, laninamivir octanoate, in the United States.
<span id="midArticle_2"/>Biota said it would incur related charges of about $5 million-$5.5 million in connection with the restructuring, which it expects to be complete by the first half of 2015.
<span id="midArticle_3"/>The company had 89 employees as of June 30, 2013, according to its 2013 annual report.
<span id="midArticle_4"/>The restructuring would help Biota cut costs by about $8 million-$10 million, the company said in a statement on Monday.
<span id="midArticle_5"/>Biota's partner, Daiichi Sankyo Co Ltd, has been marketing laninamivir octanoate in Japan since 2010 under the brand name Inavir.
<span id="midArticle_6"/>Alpharetta, Georgia-based Biota's stock closed at $2.69 on the Nasdaq on Friday. (Reporting by Natalie Grover in Bangalore; Editing by Simon Jennings)
<span id="midArticle_7"/>
<span id="articleText"/>(Adds detail, background, shares)
<span id="midArticle_0"/>June 2 (Reuters) - Biota Pharmaceuticals Inc said it plans to cut its workforce by about two-thirds and shut down its facility in Melbourne, Australia following the loss of a key government contract.
<span id="midArticle_1"/>The Department of Health and Human Services terminated its 2011 contract with the company to provide up to $231 million to support the development of Biota's lead experimental influenza A and B treatment, laninamivir octanoate, in the United States.
<span id="midArticle_2"/>Biota said it would incur related charges of about $5 million-$5.5 million in connection with the restructuring, which it expects to be complete by the first half of 2015.
<span id="midArticle_3"/>The company had 89 employees as of June 30, 2013, according to its 2013 annual report.
<span id="midArticle_4"/>The restructuring would help Biota cut costs by about $8 million-$10 million, the company said in a statement on Monday.
<span id="midArticle_5"/>Biota's partner, Daiichi Sankyo Co Ltd, has been marketing laninamivir octanoate in Japan since 2010 under the brand name Inavir.
<span id="midArticle_6"/>Alpharetta, Georgia-based Biota's stock closed at $2.69 on the Nasdaq on Friday. (Reporting by Natalie Grover in Bangalore; Editing by Simon Jennings)
<span id="midArticle_7"/>
- Link this
- Share this
- Digg this
- Reprints
via Smart Health Shop Forum http://ift.tt/1tBia7l
No comments:
Post a Comment