Biota records small year-end loss
Wednesday, 27 August, 2008
Biota Holdings [ASX: BTA] recorded a small loss for the financial year, thanks largely to the legal battle with GlaxoSmithKline (GSK).
The company lost $6.5 million after tax, a significant reduction in last year's profit of $20.2 million.
Among the company's expenses were litigation costs of $21.8 million accrued due to the legal battle.
Biota had taken GSK to court claiming it had failed to promote Biota's flu treatment Relenza properly.
The case was recently settled, with Biota accepting $20 million from GSK.
The Victorian Supreme the court ordered both companies to pay their own litigation costs.
Another reason for the loss was a nearly 50 percent decrease of Relenza royalties to $20.5 million.
Nevertheless, the company remains in a strong cash position, with $60.2 million in the bank.
The company also predicts that with the long-running court case settled it will earn around $12 million in profit in FY09.
The company's share price was unaffected by the announcement.
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