Following scathing criticism of the Biota board by myself and many other shareholders, we finally get some info on what Biota is doing. There is great opportunity here for Biota.
BIOTA HOLDINGS LIMITED 2003-04-24 ASX-SIGNAL-G
HOMEX - Melbourne
+++++++++++++++++++++++++ Biota Holdings Limited (ASX:BTA) is a world leader in respiratory antiviral drug and diagnostic research. Accordingly, the Company has received many enquiries from shareholders and the public about the Company's response to SARS (Severe Acute Respiratory Syndrome) and recent outbreaks of avian flu.
AVIAN FLU OUTBREAK
Over the last few days, reports have emerged from the Netherlands of a dramatic outbreak of avian (or bird) flu, caused by the influenza A (H7N7) virus. While avian flu spreads mainly among chickens, it has the potential to spread to humans. Earlier this year, an outbreak of avian flu was reported in Hong Kong, resulting in the deaths of two family members. This week, a major outbreak in chickens was reported in the Netherlands, the EU's largest poultry exporter, leading to the reported slaughter of 16 million animals across 920 farms, and transport bans introduced by at least one neighbouring country. So far, one Dutch veterinarian has died after contracting the avian flu, following a visit to a farm infected with the virus. Reports of infections in significant numbers of other people are now emerging.
The Dutch strain of avian flu, referred to as H7N7 is different to the strain of avian flu reported in Hong Kong earlier this year, which was H5N1. Vaccines are in early stages of development for the H5N1 strain, but would not be effective against the H7N7 strain. Fortunately, antiviral drugs such as RelenZa(TM) are effective against all strains of flu, including both avian strains. According to a Dutch Health Ministry spokesperson, "If (the veterinarian) had taken his antivirals he probably wouldn't have died."
"Outbreaks such as this, point to the role that antiviral drugs such as Relenza can play, both in managing influenza epidemics and in curtailing the spread of novel influenza strains," said Biota CEO, Peter Molloy.
For the last several years, the incidence of flu has been low, but experts agree that a major global epidemic will almost certainly occur in the future. In January this year, a severe outbreak in Japan led to the closure of 500 schools across the country and rapid depletion of the available stocks of Relenza.
"If this were repeated in the future and spread to the US or Europe, it would be difficult to keep up supplies," said Mr Molloy. Some governments are now endorsing stockpiling of anti-influenza drugs.
One of the concerns about the avian flu is that it might start spreading from human to human. The World Health Organisation has stated that there is no evidence of this at present and that all current infections appear to be related to contact with infected chickens.
SARS AND BIOTA
Unlike influenza, SARS is caused by infection with a novel strain of coronavirus. This is a family of viruses, some of which are responsible for colds in humans.
"Because Relenza works by targeting the neuraminidase protein on the surface of the influenza virus, and coronaviruses do not possess the neuraminidase protein, it is most unlikely that Relenza would be of any benefit against SARS," said Dr Simon Tucker, Biota's Director of Research.
Some have speculated that Biota's anti-rhinovirus compound, currently in preclinical development, or one of its other antiviral compounds might prove to be effective against SARS.
"Whether any of our antiviral compounds are effective against the SARS virus remains to be established," said Dr Tucker.
One thing well established is that the development and evaluation of any novel SARS drug is likely to take several years. A major constraint in the testing and development of any new drug against SARS is that, due to the pathogenicity of the virus, the studies can only be conducted in research centres with stringent containment facilities.
"Because Biota does not have such facilities," said Dr Tucker, "We intend to work with US investigators to test our compounds against SARS isolates." In the meantime, the Company is evaluating the use of common coronaviruses for preliminary testing of its library of antiviral drugs.
DIAGNOSTICS PLAY A VITAL ROLE
"Treating SARS is only half the story," said Biota CEO, Peter Molloy. "Detection is the other pressing concern."
SARS presents as an influenza-like illness (ILI), and in the absence of any rapid, point-of-care diagnostic assay, is very difficult to distinguish from influenza. Biota's FLU OIA assay detects all types of influenza, and provides a quick and accurate confirmation that the illness is flu rather than SARS. This could make it useful as a first screen for those presenting with ILI symptoms, particularly during the influenza season.
"We have had considerable interest in the FLU OIA assay from prospective distributors in Asia, as a result of the SARS outbreak and the earlier avian flu outbreak in Hong Kong," Mr Molloy also noted that FLU OIA would readily detect the avian flu and be useful in the current European outbreak.
BIO-DEFENSE IMPLICATIONS
The SARS and avian flu outbreaks have highlighted the seriousness of respiratory viral diseases to health authorities around the world. One area of government vigilance and concern is the possible use of influenza or other respiratory viruses as bio-terrorism agents. Biota is currently working with US authorities to investigate possible ways in which Biota can contribute to combating this threat and potentially participate in the funding available for research into such programs.
THE NEXT GENERATION OF FLU THERAPIES
The increasing importance of influenza means that ongoing research and development into improved influenza therapies is vital. Biota continues to progress its FLUNET(TM) program, aimed at developing second-generation influenza drugs, capable of once-weekly dosage and suitable for prevention as well as treatment of all types of influenza.
The FLUNET program is currently at the preclinical stage and the Company is seeking development partners to take its drug candidates into human trials.
For further information, please contact: Mr Peter Molloy (CEO) or Dr Simon Tucker (Director, Research) Biota Holdings Limited Tel +61 3 9529 2311
www.biota.com.au
Relenza is a registered trademark of the GlaxoSmithKline group of companies FLU OIA is a registered trademark of Thermo BioStar Inc FLUNET is a registered trademark of Biota Scientific Management Pty Ltd
BTA Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held