Biota Pharma plans restructuring following loss of BARDA contract

USA-based Biota Pharmaceuticals (Nasdaq: BOTA) has adopted a plan to restructure the company's operations following completion of a board review of its business as a result of a contract loss.

The adoption of the plan was the result of a recent decision by the US Department of Health and Human Services Office of Assistant Secretary for Preparedness and Response (ASPR) Biomedical Advanced Research and Development Authority (BARDA) to terminate its contract with the company for the convenience of the US government. This contract was supporting the development of laninamivir octanoate, a long-acting neuraminidase inhibitor (LANI), for the treatment of uncomplicated influenza A and B, the company noted.

Immediate actions resulting from the adoption of this plan will involve a re-alignment of the company's operations and resources. Specifically, Biota plans to reduce its workforce by around two-thirds over the next six to nine months and close its Melbourne, Australia, facility by June 30, 2015. Biota Pharma was formed two years ago as a result of a  merger between Australia Biota Holdings and the USA’s Nabi Biopharmaceuticals.