Anti-infective drugs developer Biota Holdings says its partner Daiichi Sankyo has won approval to manufacture and market a new flu drug, Inavir, in Japan.
Biota shares surged in the wake of the news, closing 15.5 cents, or 17.4 per cent, higher at $1.045
Inavir, or laninamivir octanoate, is a long-acting neuraminidase inhibitor which does not require daily or more frequent dosing like current products.
Neuraminidase inhibitors are anti-viral agents that can treat an established flu infection or prevent flu prior to exposure.
Biota said the new class of long-acting neuraminidase inhibitors could be used to medicate patients on a "one and done" basis.
Biota and Daiichi Sankyo merged their respective LANI programs in 2003.
Daiichi Sankyo holds an option to manufacture and sell laninamivir in Japan, in return for funding an extensive range of Japanese clinical trials.
Biota will receive a royalty on all sales in Japan and may also qualify for sales milestone payments.
Daiichi Sankyo and Biota have been in talks with suitable companies for the licensing of laninamivir in the rest of world.
AAP