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Maurice Blackburn is acting on behalf of Biota Holdings Limited in its action against GlaxoSmithKline.
Biota is a small, innovative Australian biotech company. Biota isolated and developed an influenza-fighting drug, which is now known as Relenza. Biota licensed the drug to the global giant GlaxoSmithKline for commercial exploitation, and was to receive a 7% royalty from sales, once the drug was marketed.
When first marketed in 1999/00, Relenza captured close to 50% of the emerging global market for this type of new flu drugs, called neuraminidase inhibitors (NAI). Biota alleges that shortly afterwards GlaxoSmithKline withdrew its support for the drug and allowed Relenza's market share to collapse to approximately 3% of the global NAI market. This market was worth an estimated AUD$500 million in 2003/2004. As a result, Biota lost the royalties which it would have received had GlaxoSmithKline met its obligations under the Licensing Agreement.
The Action
The Statement of Claim, filed in the Supreme Court of Victoria in June 2004, alleges that GlaxoSmithKline breached the Licensing Agreement and fiduciary duties by failing to use its "best endeavours" in conducting the clinical testing program and in promoting and marketing of the drug.
In taking on this fight, to require performance of the agreement, Biota is taking on a global pharmaceutical giant. The Glaxo group has over 100,000 employees worldwide and had revenue of £21.4 billion in 2003.
The case is progressing well and is likely to be heard in 2008. Biota is seeking substantial damages for royalties lost to date and for future losses for the life of the product.
