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June 2 Biota Pharmaceuticals Inc said
it plans to cut its workforce by about two-thirds and shut down
its facility in Melbourne, Australia following the loss of a key
The Department of Health and Human Services terminated its
2011 contract with the company to provide up to $231 million to
support the development of Biota's lead experimental influenza
A and B treatment, laninamivir octanoate, in the United States.
Biota said it would incur related charges of about $5
million-$5.5 million in connection with the restructuring, which
it expects to be complete by the first half of 2015.
The company had 89 employees as of June 30, 2013, according
to its 2013 annual report.
The restructuring would help Biota cut costs by about $8
million-$10 million, the company said in a statement on Monday.
Biota's partner, Daiichi Sankyo Co Ltd, has been
marketing laninamivir octanoate in Japan since 2010 under the
brand name Inavir.
Alpharetta, Georgia-based Biota's stock closed at $2.69 on
the Nasdaq on Friday.
(Reporting by Natalie Grover in Bangalore; Editing by Simon