Vectura Group plc - Interim Results

Chippenham, UK – 16 November 2010: Vectura Group plc (LSE: VEC) (“Vectura”), today announces its interim results for the six months ended 30 September 2010.

Financial Highlights

- Revenues increased by 15% to £26.3m (2009/10 H1: £22.8m)

- Gross profit up by 17% to £24.9m (2009/10 H1: £21.2m)

- EBITDA increased by 174% to £6.3m (2009/10 H1: £2.3m)

- Loss after tax reduced by 94% to £0.2m (2009/10 H1: £3.3m)

- Cash and cash equivalents increased by £13.8m to £77.9m (£64.1m at 31 March 2010)

Pipeline & Company Update

- GSK (asthma/COPD)

- GSK signed a worldwide non-exclusive agreement to license certain of Vectura’s patents in relation to two late-stage development compounds

- £10m up-front payment received and further £10m expected over the period to launch

- Additional royalties from sales of up to £13m p.a.

- NVA237 (COPD)

- Phase III trial results to be announced in Q2 2011

- Novartis expects launch in 2012

- QVA149 (COPD)

- $7.5m (£5.1m) milestone triggered by start of Phase III studies

- Novartis expects launch in 2013

- VR315 (asthma/COPD)

- Next milestones expected on approval in EU

- $9.5m (£6.2m) payment received from Sandoz in respect of US agreement

- Ongoing dialogue with US regulators on development pathways

- Licensing discussions ongoing for US and ROW

- VR632 (asthma/COPD)

- Good development progress, €0.6m (£0.5m) milestone received from Sandoz in October 2010

- VR506 (asthma)

- Preparations for clinical development ongoing

- VR040 (Parkinson’s disease)

- Phase II study results demonstrated clinically relevant and statistically significant benefit

- Licensing discussions ongoing

- VR496 (cystic fibrosis)

- Phase II proof-of-concept study results on track to read out in early 2011

- R&D restructuring and cost-saving

- Closure of the Nottingham facility and consolidation of all formulation development activities at our Chippenham facility

- Anticipated annual cost-savings of approximately £6m from the next financial year

Dr Chris Blackwell, Chief Executive of Vectura:

“Vectura has delivered a robust set of results with a strong increase in revenues and gross profits and a material improvement in our cash position. Whilst we have taken some tough decisions during the period to restructure the business and sharpen our focus, we have made important progress on several fronts. In particular, the recent deal with GSK further validates our technology and strengthens our balance sheet, while NVA237 and QVA149 are getting nearer to the market, with launches expected in 2012 and 2013 respectively. With a reduced risk profile, cash of £78m and substantial revenues expected in the short-term, Vectura is moving closer to becoming a sustainably cash generative and profitable company.”

Chris Blackwell, Chief Executive and Anne Hyland, Chief Financial Officer, will host an analyst/investor briefing today at 09.30 a.m. GMT at the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. For further details please contact Juliet Edwards on +44(0)20 7269 7125.

Enquiries

Vectura Group plc +44 (0)1249 667700

Chris Blackwell, Chief Executive

Anne Hyland, Chief Financial Officer

Julia Wilson, Director of Investor Relations and Corporate Communications

Financial Dynamics +44 (0)20 7831 3113

Ben Atwel

l Susan Quigley

About Vectura

Vectura Group plc develops inhaled therapies principally for the treatment of respiratory diseases. Vectura’s main products target diseases such as asthma and chronic obstructive pulmonary disease (COPD), a growing market that is currently estimated to be worth in excess of $25 billion. Vectura also develops products for other lung pathologies and non-respiratory diseases.

Vectura has six products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, some of which have been licensed to major pharmaceutical companies. Vectura seeks to develop certain programmes itself where this will optimise value. Vectura’s formulation and inhalation technologies are available to other pharmaceutical companies on an out-licensing basis where this complements Vectura’s business strategy.

Vectura has development collaborations and licence agreements with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter, GlaxoSmithKline (GSK) and Otsuka. For further information, please visit Vectura’s website at www.vectura.com.

Back to news