Biota moves US research to Australia

Biota (ASX: BTA) will relocate its US research operations to its new facilities in Melbourne in a bid to save costs.

The company's US subsidiary, Biota Inc, has been developing therapeutic products for treatment of HIV and hepatitis C using its N-MAX technology platform at their San Diego-based labs. But in 2004, the US research operations cost the company AUD$7.4 million.

"It's a commonsense move for us ... we can wipe out a significant amount of that $7.4 million cost by relocating the research operations in Australia," CFO Andrew MacDonald told Australian Biotechnology News.

MacDonald said that the recent decision by GlaxoSmithKline to wind up its hepatitis C collaboration with Biota Inc had influenced the decision somewhat, but was not a major driver.

Biota Inc will continue to operate as a US entity and will retain its intellectual property rights to technology and compounds developed in Australia for it, but will contract its research operations out to its Australian parent Biota Holdings. The company's CEO, Peter Molloy, and business development activities will remain in the US.

MacDonald said that some of the US staff would come to Australia to help with the transfer of the US research operations, and said staff would be given the option of relocating to Australia.

According to Dr John Lambert, who has been the acting director of research at Biota Inc for the last nine months, the transfer of activities should take place by the end of November, and should not impact research progress.

Biota's new facility -- 2500 square metres of office and laboratory space near Monash University -- is nearing completion and the company expects all Australian personnel to move in during October.