Biota Pharmaceuticals Inc (NASDAQ:BOTA) Stunned By BARDA Contract Termination For Laninamivir Octanoate
Biota Pharmaceuticals Inc (NASDAQ:BOTA) in a press release announced that the company would no longer provide services of developing Laninamivir octanoate, to the government’s Biomedical Advanced Research and Development Authority (BARDA) and the Department of Health and Human Services Office of Assistant Secretary for Preparedness and Response (ASPR).
In-process Review leads to termination
Biota Pharmaceuticals Inc (NASDAQ:BOTA)contract which began in 2011, April was part of the Investigational New Drug category for treating common cold of A and B types. Biota was administering its Laninamivir Octanoate in the dry powder inhalation form, with its TwinCaps® product.
In Japanese markets the product was used under the brand name Inavir®, and was noticeably successful. Biota’s partner, Daiichi-sankyo had used it to treat influenza A and B, during 2010 and for the second time in 2013 there.
As part of its BARDA services, BOTA had already completed 3, Phase 1 Clinical trials; had enrolled patients for the Phase 2 trials, with results to be announced by Q32014.
Biota Pharmaceuticals Inc (NASDAQ:BOTA) response has been guarded. The management has released confirmation of the termination of the work order, nearly a week after it received the notice to stop further work.
Though there are no assigned reasons for the withdrawal, the in-process review has led to the termination of the services.
Despite the termination of the contract, and CEO of Biota Pharmaceuticals, Inc. Russell H. Plumb, has stated that, “Notwithstanding this action, we intend to complete the collection, analysis, and reporting of the data from the IGLOO trial, as well as the recently completed Phase 1 trials. Subject to the results of IGLOO trial, which we expect will be available in the third quarter; we will make a data-driven decision as to the next steps in the development of laninamivir octanoate.”
BOTA is expected to negotiate hard on the pre-termination of the project and seek higher compensation for the services rendered thus far!