Biota names new CEO

Infection and inflammation drug developer Biota Holdings (ASX: BTA) has named Peter Molloy as its new chief executive, replacing Dr Hugh Niall who is retiring this year.

It is hoped the United States-based executive will help the one-time rising star of the Melbourne biotechnology scene turn around its fortunes, after its anti-flu drug Relenza failed to keep the market's interest.

Molloy, who is Australian, has most recently worked as president and chief executive officer of cancer drug, diagnostics and virology group SLIL Biomedical Corp, where he helped grow the company's valuation from $US16 million to $US35 million over two years.

He has also worked as managing director of Melbourne's Florigene, as well as roles with Pharmacia, Faulding and subsidiaries of the company.

Biota chairman John Grant said recruiting a CEO to replace Niall was one of the company's major milestones for 2002.

He said Molloy had 20 years experience in pharmaceuticals and biotechnology, with skills spanning management, strategy and communications.

"He has a strong commercial focus and a track record in re-invigorating companies," Grant said, denying that a US-based CEO was part of a stronger shift away from Australia for the company.

"We think it's going to actually greatly enhance our research capabilities here and in the US by having senior representation based in the US able to get to potential collaborators.

"What it's doing is really extending a major part of our strategy, which is to increase collaborations with multinationals."

Biota's strategy was outlined in March when the company unveiled an interim loss of $3.2 million compared with a profit of $1.4 million for the previous corresponding period.

At that time, the company attributed more than half the loss to setting up its US arm, Biota Inc.

"As well as the appointment of the new CEO, another milestone for this calendar year is to cement new collaborative arrangements for our respiratory work her and anti-infectives work in the US and those discussions are being pursued actively and are progressing well," Grant said.

"We also want to access the US capital markets for funding our US activities."

He said Niall was currently in the US working on these talks.

Grant said that Molloy would begin in his new role on July 15, with Niall remaining full-time until the end of that month.

He said Niall was expected to continue his association with the company in a yet-to-be-defined position.

At the time of writing, Biota's shares were trading about 1 per cent lower at 45 cents on negligible volumes.

Biota's Melbourne research labs are developing a pipeline of antiviral drugs targeting influenza and other acute respiratory tract infections, including a second-generation flu treatment called FLUNETr.

In the US, Biota Inc is developing drugs for chronic viral infections such as Hepatitis B, HIV and Herpes Simplex.