GSK reaches settlement with Biota

GlaxoSmithKline (GSK) has reached a settlement in its litigation with Biota Holdings regarding the commercialisation of Relenza (zanamivir).

While admitting no liability as part of the settlement, GSK has agreed to make a payment of 20 million Australian dollars (ten million pounds) to Biota.

Litigation in this case began in May 2004, while the licensing agreement for the compound is not affected by this settlement agreement.

In November 2005, Biota began negotiating with GSK regarding the terms of sale of Relenza.

Biotech said the French government is planning to stockpile nine million doses of the drug, with GSK ramping up production of the compound to meet demand.

GSK said it could not produce enough units but had greatly expanded its internal capacity and opened new plants for the compound in different continents/.

Andrew Witty, chief executive officer of GSK, said: “We are pleased to have reached a settlement that is satisfactory for both companies and brings an end to this litigation.”

He added that the company is dedicated to working together with biotechnology companies and external organisations in its continuing effort to bring vaccines and novel drugs to patients.

GSK received European approval for Relenza in August 2006.