Biota (ASX:BTA) continued its extraordinary bull run today, bucking a generally flat market and adding another 5% to $3.12. Shares have risen 15% in October, and plucky investors who bought in at the beginning of 2009 at below 40c would be laughing all the way to the bank.
Biota is a drug development company that specializes in developing products for the treatment of viral respiratory diseases, particularly influenza. And with swine flu gearing up for the northern winter it comes as no surprise to see investors piling in.
In August the company reported an after tax profit of $38M on revenues of $83M including royalties from its drug Relenza of $45M. The positive result contrasts strongly with the previous year’s loss of $9.3M.
Its lawsuit against GlaxoSmithKline was resolved by mediation, however Biota still incurred $7M in litigation costs.
The company has a cash position of $86M and a market capitalisation of $516M.
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