Biota Pharmaceuticals Reports Second Quarter Financial Results and Corporate Update

Biota Pharmaceuticals Reports Second Quarter Financial Results and Corporate
Update

Commercial Milestone Earned on Strong Inavir(R) Sales in Japan

ATLANTA, May 10, 2013 (GLOBE NEWSWIRE) -- Biota Pharmaceuticals, Inc.
(Nasdaq:BOTA) (the "Company") today announced its financial results for the
three month period ended March 31, 2013, and provided an update on recent
corporate developments.

In connection with announcing its financial results, the Company also
announced that net sales of Inavir^® (laninamivir octanoate) in Japan
surpassed a key threshold in the three month period ended March 31, 2013,
resulting in the Company earning a $2.9 million commercial milestone payment
from its partner, Daiichi Sankyo Company, Ltd. The Company recognized the
amount as revenue in the three-month period ended March 31, 2013, and
anticipates receiving the milestone payment this quarter.

"We are pleased with the continued growth of Inavir^® sales in Japan and
believe these gains reflect the competitive advantages that laninamivir
octanoate possesses, including its simple, inhaled single dose treatment
regimen," said Russell H. Plumb, President and Chief Executive Officer of
Biota Pharmaceuticals. "We look forward to initiating our Phase 2 trial of
laninamivir octanoate this quarter."

Recent Corporate Developments

Board of Director Appointments – On May 6, 2013 the Company announced a number
of changes to its Board of Directors, including the resignations of both Dr.
Raafat Fahim and Mr. Paul Bell, as well as the appointments of Ms. Anne M.
VanLent and Mr. Michael R. Dougherty as Directors.

Adoption of Revised Corporate Strategy – On April 15, 2013 the Company
announced that its Board of Directors had adopted a revised corporate
strategy, the implementation of which will shift the Company's primary
strategic and operational focus from early-stage research to clinical-stage
development programs. As a result of adopting this strategy, the Company
rationalized its preclinical programs, realigned its resources, and is
reducing its workforce by approximately 30%.

Laninamivir Octanoate - The Company anticipates initiating a Phase 2 clinical
trial of laninamivir octanoate this quarter, which it is developing under an
Investigational New Drug application (IND) in the United States (U.S.) in
connection with its contract with the U.S. Biomedical Advanced Research and
Development Authority (BARDA). The trial, entitled IGLOO, is a Phase 2
randomized, double blinded, placebo controlled, parallel arm study to
investigate the efficacy and safety of inhaled laninamivir octanoate
TwinCaps^® dry powder inhaler in adults with symptomatic influenza A or B
infection.

Financial Results for the Three Month Period Ended March 31, 2013

The Company reported net income in the three month period ended March 31, 2013
of $0.2 million, as compared to a net loss of $2.0 million in the same period
of 2012. The $2.2 million change from net loss in 2012 to net income in 2013
was primarily the result of a $5.4 million increase in revenue and a $0.1
million decrease in income tax expense, offset in part by a $2.7 million
increase in operating expenses and a $0.6 million decrease in interest income.
Basic and diluted net income per share were $0.01 for the three month period
ended March 31, 2013, as compared to a basic and diluted net loss per share of
$0.09 in the same period of 2012.

Revenue increased to $12.5 million for the three months ended March 31, 2013
from $7.1 million in the same period of 2012, primarily as a result of the
Company earning a commercial milestone from Daiichi Sankyo related to net
sales of Inavir^® in Japan and increased service revenue in 2013 due to the
advancement of the Company's laninamivir octanoate program under the BARDA
contract.

Cost of revenue increased to $4.1 million in the three months ended March 31,
2013 from $1.8 million in the same three month period in 2012 due principally
to the advancement of the Company's laninamivir octanoate program under the
BARDA contract.

Research and development expense decreased to $4.9 million for the three
months ended March 31, 2013 from $5.7 million in the same period of 2012 due
largely to the completion of a Phase 2 clinical trial of vapendavir during
2012, as well as lower personnel-related expenses in 2013.

General and administrative expense increased to $3.4 million in the three
months ended March 31, 2013 from $2.2 million in the same period of 2012
primarily due to an increase in personnel-related expenses associated with the
addition of executive and administrative staff, as well as increased legal,
audit and other professional fees associated with the integration and
transition of the Company's operations subsequent to its merger in November,
2012.

As of March 31, 2013, the Company held $70.3 million in cash and cash
equivalents.

About Biota

Biota Pharmaceuticals, Inc. is a biopharmaceutical company focused on the
discovery and development of anti-infective products to prevent and treat
serious and potentially life-threatening infectious diseases. The Company has
discovered two generations of inhaled neuraminidase inhibitors (NIs) that have
been commercialized, the first of which is zanamivir, marketed world-wide as
Relenza^® by GlaxoSmithKline. The Company's second generation NIs, referred to
as long-acting neuraminidase inhibitors (LANIs), allow for a single inhaled
treatment as compared to five-day, twice-daily dosing associated with first
generation inhaled or oral neuraminidase inhibitors. The Company and Daiichi
Sankyo have cross-licensed the world-wide rights to develop and commercialize
LANIs, including laninamivir octanoate, which is marketed by Daiichi Sankyo
Inc. in Japan as Inavir^®.

The Company currently has two Phase 2 clinical-stage product candidates in
development: laninamivir octanoate, which it is developing under an existing
contract with the U.S. Office of Biomedical Advanced Research and Development
Authority ("BARDA") that provides up to $231 million in financial support for
the Company to complete the clinical development of laninamivir octanoate for
the treatment of influenza A and B infections in the U.S.; and vapendavir, a
potent, oral broad-spectrum capsid inhibitor of human rhino virus (HRV). In
addition to these clinical-stage programs, the Company has preclinical
programs focused on developing treatments for respiratory syncytial virus
(RSV) and gram-negative and multi-drug resistant bacterial infections. For
additional information about the Company, please visit www.biotapharma.com.

Safe Harbor Statement

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995 that involve known and
unknown risks and uncertainties. All statements, other than historical facts,
including statements regarding the Company's plans to advance laninamivir
octanoate into a Phase 2 clinical trial and the expected timing of the receipt
of a milestone payment this quarter are forward looking statements. Various
important factors could cause actual results, performance, events or
achievements to materially differ from those expressed or implied by the
forward-looking statements, including: BARDA not terminating or significantly
amending the Company's existing contract to develop laninamivir octanoate for
the U.S.; the Company, BARDA, the FDA, a data safety monitoring board, or an
institutional review board, delaying, limiting, suspending or terminating the
clinical development of laninamivir octanoate at any time for a lack of
safety, tolerability, anti-viral activity, commercial viability, regulatory or
manufacturing issues, or any other reason whatsoever; the Company's ability to
comply with extensive government regulations in various countries and regions
in which it expects to conduct its clinical trials; the Company's ability to
secure, manage and retain qualified third-party clinical research, preclinical
research, data management and contract manufacturing organizations which it
relies on to assist in the design, development and implementation of the
clinical development of laninamivir octanoate; and other cautionary statements
contained elsewhere in this press release and in the Company's Quarterly
Reports on Form 10-Q for the quarters ended December 31, 2013 and March 31,
2013, as filed with the U.S. Securities and Exchange Commission, or SEC, on
February 11, 2013 and May 10, 2013, respectively.

There may be events in the future that the Company is unable to predict, or
over which it has no control, and the Company's business, financial condition,
results of operations and prospects may change in the future. The Company may
not update these forward-looking statements more frequently than quarterly
unless it has an obligation under U.S. Federal securities laws to do so.

Biota is a registered trademark of Biota Holdings Limited. Relenza^TM is a
trademark of GlaxoSmithKline plc, Inavir^® is a registered trademark of
Daiichi Sankyo Company, Ltd and TwinCaps^® is a registered trademark of
Hovione FarmaCiencia SA.

BIOTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
                                                  
                                                  March 31, 2013 June 30,2012
                                                  (unaudited)    
                                                   
ASSETS
Current assets                                                   
Cash and cash equivalents                          $70,265        $53,790
Accounts receivable                                15,173         5,966
Prepaid and other current assets                   1,847          1,374
Total current assets                               87,285         61,130
Non-current assets:                                              
Property and equipment, net                        4,173          4,944
Intangible assets, net                             818            1,804
Deferred tax assets                                2,563          1,419
Total non-current assets                           7,554          8,167
Total assets                                       $94,839        $69,297
                                                                
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:                                             
Accounts payable                                   $2,282         $2,851
Accrued expenses                                   5,935          6,133
Accrued severance obligations                      3,858          --
Deferred revenue                                   650            398
Deferred tax liabilities                           1,714          130
Total current liabilities                          14,439         9,512
Non-current liabilities:                                         
Other liabilities, net of current portion          296            504
Total non-current liabilities                      296            504
Total liabilities                                  14,735         10,016
Stockholders' equity:                                            
Common stock, $0.10 par value; 200,000,000 shares
authorized 34,291,351 shares issued and            3,422          100,394
182,350,316 shares outstanding at December 31,
2012 and June 30, 2012, respectively
Additional paid-in capital                         234,775        668
Treasury stock, 5,867,361 and 1,816,178 at cost,
at December 31, 2012 and June 30, 2012,            (117,048)      (1,397)
respectively
Accumulated other comprehensive income             31,053         29,516
Accumulated deficit                                (72,098)       (69,900)
Total stockholders' equity                         80,104         59,281
Total liabilities and stockholders' equity         $94,839        $69,297


BIOTA PHARMACEUTICALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share amounts)
                                                       
                                  Three Months Ended    Nine Months Ended
                                   March 31,             March 31,
                                  2013       2012       2013       2012
Revenue:                                                         
Royalty revenue and milestones     $7,709     $5,189     $9,636     $6,649
Revenue from services              4,787      1,879      14,468     6,611
Other                              --         22         242        69
Total revenue                      12,496     7,090      24,346     13,329
                                                                
Operating expense:                           `                    
Cost of revenue                    4,094      1,787      12,731     6,047
Research and development           4,936      5,713      13,583     17,769
General and administrative         3,436      2,220      13,704     5,871
Total operating expense            12,466     9,720      40,018     29,714
Gain (loss) from operations        30         (2,630)    (15,672)   (16,385)
                                                                
Non-operating income:                                            
Gain recorded on merger            --         --         7,805      --
Research and development credit    --         --         4,428      --
Interest income                    173        739        1,125      2,565
                                                                
Income (loss) before tax           203        (1,891)    (2,314)    (13,793)
Income tax benefit (expense)       12         (146)      116        504
Net income (loss)                  $215       $(2,037)   $(2,198)   $(13,289)
                                                                
                                                                
Basic income (loss) per share      $0.01      $(0.09)    $(0.08)    $(0.59)
Diluted income (loss) per share    $0.01      $(0.09)    $(0.08)    $(0.59)
                                                                
Basic weighted-average shares      28,162,295 22,709,008 28,145,541 22,709,008
outstanding
Diluted weighted-average shares    28,182,697 22,709,008 28,145,541 22,709,008
outstanding

CONTACT: Russell H. Plumb
         Chief Executive Officer
         (678) 221-3351
         r.plumb@biotapharma.com
        
         Hershel Berry
         Blueprint Life Science Group
         (415) 375-3340
         hberry@bplifescience.com

Biota Pharmaceuticals, Inc
 
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