Chippenham, UK – 23 May 2011: Vectura Group plc (LSE: VEC) (“Vectura”), which develops inhaled pharmaceuticals, today announces its preliminary results for the year ended 31 March 2011.
Financial Highlights
• Strong revenue growth of 7% to £42.9m (2009/10: £40.1m)
• Gross profit increased by 10% to £40.2m (2009/10: £36.6m)
• Cash generative over the year; cash increased by £10.3m to £74.4m at 31 March 2011 (31 March 2010: £64.1m)
• Positive EBITDA* of £0.5m, a £2.1m improvement (2009/10: negative £1.6m)
• Loss after tax reduced by 14% to £8.8m (2009/10: £10.2m)
• Loss per share improved by 16% to 2.7p (2009/10: 3.2p)
Pipeline and Company Highlights
• NVA237 (COPD)
o Phase III trial results announced in April 2011 showed that NVA237 significantly improved lung function while demonstrating a good safety profile in patients with moderate-to-severe COPD
o Further Phase III trial results expected to be released by Novartis in September 2011
o Novartis expects to launch NVA237 in 2012
• QVA149 (COPD)
o $7.5m (£5.1m) milestone triggered by start of Phase III studies in May 2010
o Novartis expects to launch QVA149 in 2013
• VR315 (asthma/COPD)
o Development progress
• VR632 (asthma/COPD)
o €0.6m (£0.5m) milestone received in October 2010, reflecting development progress
• VR506 (asthma)
o Clinical programme commenced
• GSK (asthma/COPD)
o Worldwide, non-exclusive licence to certain of Vectura’s patents for two late-stage development compounds signed in August 2010
o £10m up-front payment received; a further £10m is expected over the period to launch
o Royalties on sales of up to £13m per year
• VR040 (Parkinson’s disease)
o Phase II study results, announced in November 2010, showed a clinically relevant and statistically significant benefit, confirming previous Phase II study findings
• VR496 (cystic fibrosis)
o Phase II proof-of-concept study, announced in March 2011, demonstrated good safety and tolerability, with evidence of anti-inflammatory and mucolytic activity
• R&D cost-saving
o Nottingham facility closed and all formulation development activities consolidated at our Chippenham facility during the financial year
o On track for anticipated annual cost-savings of approximately £6m from April 2011
Dr Chris Blackwell, Chief Executive of Vectura:
“Continuing the drive to increase revenues and reduce losses, Vectura has delivered another set of robust results, ending the financial year with cash of over £74m. Following the R&D restructuring undertaken in the year, we have focused our pipeline on key respiratory products and consolidated our formulation activities at our Chippenham facility, resulting in annual cost-savings of nearly £6m per annum. Over the course of the last 12 months, we and our partners have reported important clinical data, including the recent positive NVA237 Phase III data, underlining our confidence in our broad late-stage pipeline. With a reduced risk profile, strong balance sheet and multiple key catalysts expected in the short-term, Vectura continues to be innovative while moving closer to becoming a self-sustaining cash-generative company.”
* Earnings before interest, tax, depreciation and amortisation
Chris Blackwell, Chief Executive and Anne Hyland, Chief Financial Officer, will host an analyst/investor briefing today at 09.30 a.m. BST at the offices of Financial Dynamics, Holborn Gate, 26 Southampton Buildings, London, WC2A 1PB. For further details please contact Mo Noonan on +44(0)20 7269 7116.
Enquiries
Vectura Group plc +44 (0)1249 667700
Chris Blackwell, Chief Executive
Anne Hyland, Chief Financial Officer
Julia Wilson, Director of Investor Relations
Financial Dynamics +44 (0)20 7831 3113
Ben Atwell
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 has six products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, a number of which have been licensed to major pharmaceutical companies. Vectura has development collaborations and licence agreements with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter and GlaxoSmithKline (GSK).
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.
For further information, please visit Vectura’s website at www.vectura.com
Forward-looking statements This press release contains forward-looking statements, including statements about the discovery, development and commercialisation of products. Various risks may cause Vectura’s actual results to differ materially from those expressed or implied by the forward-looking statements, including: adverse results in clinical development programmes; failure to obtain patent protection for inventions; commercial limitations imposed by patents owned or controlled by third parties; dependence upon strategic alliance partners to develop and commercialise products and services; difficulties or delays in obtaining regulatory approvals to market products and services resulting from development efforts; the requirement for substantial funding to conduct research and development and to expand commercialisation activities; and product initiatives by competitors. As a result of these factors, prospective investors are cautioned not to rely on any forward-looking statements. We disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Mo Noonan
Senior Manager
Financial Dynamics
Holborn Gate, 26 Southampton Buildings
London, WC2A 1PB
D +44 (0)20 7269 7116
M +44 (0)7876 444 977
www.fd.com
