Biota Holdings Ltd. (BTA.AU), an Australian biotechnology company, said Thursday that licensee GlaxoSmithKline (GSK) plans to more than treble its annual output capacity of its influenza antiviral drug, Relenza, in response to the H1N1 influenza pandemic.

GSK plans to boost its capacity to 190 million courses by the end of the calendar year, from 60 million courses, Biota said in a statement.

Production capacity of Relenza in its standard "diskhaler" format will be increased to 90 million courses from 60 million, and a further 100 million courses of extra capacity will be available as Relenza "rotacaps/rotahaler", the company said.

The alternative treatment was recently granted temporary approval by Swedish regulators, and hence within the European Union, for distribution during a pandemic, Biota said.

GSK is in talks with a number of global regulators to secure further approvals, the company said.

Biota receives a minimum 7% royalty on global sales of Relenza by GSK and holds patent coverage in the major markets until at least December 2014.

The expansion and any increase in royalty payments won't affect Biota's cash position until June 2010 at the earliest, it said.

-By Andrew Harrison, Dow Jones Newswires; 61-3-9292-2095; andrew.harrison@dowjones.com
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