Vectura Group plc Interim Management Statement
Chippenham, UK – 19 August 2014: Vectura Group plc (LSE: VEC; “Vectura” or the Company), today publishes its Interim Management Statement for the period 1 April 2014 to 19 August 2014.
Following the acquisition of Activaero GmbH in March 2014, the integration of the business is progressing well and Vectura’s product pipeline is progressing in line with the Board’s expectations.
VR506 (asthma) deal signed
On 30 June 2014, we reported that we had signed a development and license agreement for the US rights to VR506, Vectura’s clinical stage asthma monotherapy product delivered using Vectura’s proprietary technology. The agreement for VR506 is with Vectura's existing, undisclosed US partner for VR315 (a combination therapy for asthma/COPD). Under the terms of this agreement, Vectura's partner will be responsible for the commercialisation and manufacture of the product together with clinical development. Vectura will provide support for the US development of VR506, for which it will receive an initial payment of $4 million and up to $8 million upon achievement of pre-determined development milestones. Further development fees may be payable to Vectura if the programme progresses beyond a pre-defined milestone. In addition, Vectura will receive a royalty from all VR506 US sales.
Continued progress of US VR315 generic programme (asthma/COPD)
On 24 June 2014, we announced that we had triggered a $1.5m milestone associated with the development of VR315 in the US.
Seebri® Breezhaler® (NVA237) and Ultibro® Breezhaler® (QVA149)
The roll-out of Seebri® Breezhaler® and Ultibro® Breezhaler® continues, with Novartis reporting sales of $67m and $36m respectively for the first two quarters of the 2014 calendar year.
Novartis expect the US filing of NVA237 and QVA149 to occur in Q4 2014.
GSK licence
On 29 April 2014, we announced we had triggered the final £2m milestone relating to the licence agreement that was signed with GSK in August 2010. Under this agreement, Vectura also receives royalties on sales of BREO®/Relvar® ELLIPTA® and ANORO® ELLIPTA® up to a cap of £13m per annum. During the first two quarters of the 2014 calendar year, GSK reported sales of £11m for BREO®/Relvar® ELLIPTA® and £5m for ANORO® ELLIPTA®.
Financial update
On 21 May 2014, Vectura announced its full year results for the year ended 31 March 2014 and confirmed its robust financial position, with a cash balance of £81.7m at that date and reported a positive EBITDA of £5.2m (FY 2012/13 - loss of £3.4m).
Vectura's financial performance from 1 April 2014 to date has been in line with the Board's expectations.
Vectura's interim results for the six month period to 30 September 2014 will be announced on 18 November 2014.
Dr Chris Blackwell, Chief Executive of Vectura, commented:
“During the period we have made excellent progress with our generic programmes and we now have the support of our existing partner for VR315 in the US to help us bring VR506 to the market in an expeditious manner. With our strong cash balance and our new royalty revenues, along with the royalties received from the excellent progress of Seebri® Breezhaler® and Ultibro® Breezhaler®, Vectura is well positioned to continue its transition towards creating a leading specialty pharmaceutical company focused on airways disease.”
Enquiries
Vectura Group plc +44 (0)1249 667700
Chris Blackwell, Chief Executive
Paul Oliver, Chief Financial Officer
Karl Keegan, Chief Corporate Development Officer
FTI Consulting +44 (0)20 3727 1000
Ben Atwell / John Dineen
About Vectura
Vectura is a product development company that focuses on the development of pharmaceutical therapies for the treatment of airways-related diseases (airways diseases). This growing market includes asthma and chronic obstructive pulmonary disease (COPD) and is estimated to be worth in excess of $46 billion worldwide.
Vectura has eight products marketed by partners and a portfolio of drugs in clinical development, a number of which have been licensed to major pharmaceutical companies. Vectura has disclosed development collaborations and licence agreements with several pharmaceutical and biotechnology companies, including Novartis, Sandoz, Baxter, GlaxoSmithKline, UCB, Ablynx, Grifols and Tianjin KingYork Group Company Limited.
Vectura develops products for airways diseases and owns formulation and inhalation technologies that are available to other pharmaceutical companies on an out-licensing basis where this complements Vectura's business strategy. For further information, please visit Vectura's website at www.vectura.com.
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