Biota Pharma Adopts Restructuring Plan - Quick Facts

(RTTNews) - Upon the completion of its operational review, Biota Pharmaceuticals, Inc.'s (BOTA) board has adopted a plan to restructure its operations. The adoption of the plan was due to a recent decision by the Department of Health and Human Services Office of Assistant Secretary for Preparedness and Response Biomedical Advanced Research and Development Authority or BARDA to terminate its contract with the firm for the convenience of the U.S. Government. This contract was supporting the development of laninamivir octanoate, a long-acting neuraminidase inhibitor to treat uncomplicated influenza A and B.

Immediate actions resulting from this plan adoption would involve a re-alignment of the company's operations and resources. In particular, the firm intends to axe its workforce by about two-thirds over the next six to nine months and shut down its Melbourne, Australia facility by June 30, 2015. The company expects recording an estimated total charge of approximately $5.0 million - $5.5 million over this and the next several quarters in association with this restructuring plan.

Upon expected completion of the plan in the first half of 2015, the company anticipates that its annual, ongoing research and development and general and administrative overhead costs would be lowered by around $8.0 million - $10.0 million from current annualized levels.

In the near-term, the firm would focus on its late-stage clinical assets, namely LANI and vapendavir, as well as preclinical compounds being developed for the treatment of respiratory syncytial infections (RSV). The Company anticipates data that will inform on the possible next steps in the development of each of these respective programs will be available in the third quarter. In addition, the company anticipates exploring alternative business development and/or financing arrangements that could facilitate the continued development of LANI in later-stage trials.