Biota Holdings Ltd (ASX:BTA) says the US government has awarded an estimated US$231 million contract to its wholly owned US subsidiary for the advanced development of Laninamivir, an influenza antiviral, known as a long acting neuraminidase inhibitor (LANI) and a unique treatment for influenza.

The contract is fully funded over an estimated five (5) year period and is contingent upon the delivery of key milestones throughout the period. It is designed to provide US based manufacturing and clinical data to support a New Drug Application for laninamivir, to the US Food and Drug Administration.

Biota CEO, Peter Cook said, "The award provides visible recognition of the potential medical value of laninamivir to the world's major market. The BARDA contract will be a major contributor to a timely introduction of the product and will create the opportunity to significantly develop Biota's business in the USA".

The company said Laninamivir is approved for sale in Japan and was launched as Inavir by Daiichi Sankyo in October 2010. It is not currently approved for sale in other markets.

Shares in the Melbourne-based drug development company soared 38 per cent, or 35.7 cents, to close at 142.5 cents.