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Real-Time news about Innovata (London Stock Exchange): 0 recent articles
|vivgav: 150 price target
Vectura signs US development deal for asthma therapy UPDATE
(Adds further broker comment, share price)
LONDON (AFX) - Vectura Group PLC has struck a US collaboration and
development deal with a "leading international pharmaceutical company" for its
generic combination asthma therapy, VR315.
In a statement, the British drug developer said it will share the profits
from any eventual sales of the product, and could receive up to 63 mln usd in
The therapy is thought to be a copycat version of GlaxoSmithKline PLC's
top-selling asthma drug Advair, which generated sales of 3 bln stg last year and
will lose patent protection in around 2010.
The small-cap British company struck a similar deal in Europe last April,
with another unnamed partner. At the time analysts speculated the partner was
Novartis AG's generic drugs arm Sandoz, raising the prospect that today's deal
could be with the same company.
Vectura allocated a large portion of the 43 mln stg it raised through a
share sale in June to the remaining development programme for VR315. By offering
to co-fund the research, the company could negotiate with partners for a larger
slice of eventual profits.
"The fact that they've managed to sign this deal nine months after the
European one is a good indication that the development of VR315 is progressing
nicely," analyst Lucinda Seagrove from Jeffries Securities said.
"This is a good piece of news, and what we were hoping to hear."
Jeffries has a 'buy' recommendation and a 150 pence price target on the
Evolution Securities, meanwhile, reiterated its 'buy' recommendation and
said the news will likely lead to an upgrade in forecasts.
The company remains on track to have a product on the market when Advair
comes off patent, the broker believes.
"The cost and profit share arrangement...should allow Vectura to retain
significant upside from eventual US sales of its generic asthma combination
product," it noted.
If it is Sandoz and Vectura collaborating in Europe and the US, they are
likely to be eyeing the large and growing market for combination respiratory
drugs, currently dominated by Advair and AstraZeneca PLC's Symbicort, which
generate more than 8 bln usd in sales a year.
The therapies -- a steroid plus a long-acting beta agonist -- are widely
prescribed for asthma and, increasingly, chronic obstructive pulmonary disease,
a condition caused mostly by smoking.
Combined products are the fastest growing sector in the respiratory market,
Vectura claimed today.
VR315 is being developed to be used with its GyroHaler dry powder inhaler.
Under the terms of the US deal, Vectura will oversee the therapy's development
for the US market and set up commercial manufacture and supply of the GyroHaler
The partner, meanwhile, will be responsible for the clinical development,
manufacture and marketing.
At 9.50 am shares in the company were trading 3.25 pence, or 3.7 pct, higher
at 91.5, valuing the company at 150 mln stg. The group is set to double in size
next month, when a deal to buy UK peer Innovata PLC completes.|
|aphrodites: There has been a lot of buying of IOV shares and I shall be interested to see if they are all delivered in exchange for Vectura shares.
As I pointed out there was a lot more liquidity in IOV than VEC.
I think we will see a very interesting surge in VEC share price once the exchange is completed.
Any bets on the price as at 31 January 2007?|
|alibongo612: You and I will have to disagree regarding the merits of the "transformation" as I invested pre K&M.
Re acquisitions -the rising stockmarket is only a problem if as in IOV's case, the acquirors share price is not rising at the same rate as the targets.
By your logic on the assumption that the market continues to rise and IOV does not IOV will never be able to make an acquisition.
I assume you are not suggesting that they try to second guess the market and wait for prices to fall as that would be foolhardy as IOV would not be immune from fall itself.
Acquisitions aside I am equally critical of their apparent inability to prosecute the core business ie their failure to do more inhaler deals.
You state patience is a virtue so tell me,after almost two years how much longer are you prepare to give them ?|
|gobbie100: Ali, Ali, Ali
To turn round a failing business which was losing large amounts of money to one whose share price rises particularly given the bad name the previous management got for the company would have been almost impossible. If the rate of share price decline had continued this would be worth almost nothing by now. But yes in the last 12 months this has underperformed the market as rebuilding a shattered reputation takes time.|
|vivgav: boys........we will just have to wait until results in Dec.
Certainly I expect K&M to comment on the low share price and what they propose to do about it etc.........the bottom line is the share price is no further forward than when K&M took over....and that's what all shareholders want at the end of the day.|
|richgit: I found this fascinating .
Market manipulation, skulduggery and other manner of stock market shenanigans
have always been suspected by almost anyone whom had an interest in the
markets. Doom merchants are out in force again. Sentiment is not good at all.
Some argue we are in for a shake up when the FSA have completed its fact finding
mission on the CFD`s and Spread betting industries - of which there is growing
concern that skulduggery is at work. This less than transparent market needs to
be brought in line with the rest of the financial industry by transparent regulation,instead of murky unreported - often suspicious trades.
In resent weeks we have witnessed volatility in the small cap sectors. This has
been brought about by a group of traders whom have been edging their bets
against companies via leveraged CFD`s and spread bets. One high profile scalp
caught out in the new craze was IP2IPO`s Robert Bonnier - rumoured to have lost around £45m from recent margin calls on stocks including Regus Group, General Electric, Innovation Group, Regal Petroleum, SCI Entertainment, and Eidos.
Bonnier`s misfortune soon translated in to negative share price movements in
IP2IPO. The knock on effect is forced selling of his shares in IP2IPO while at the same time fellow directors try to hold up the price by entering the market to buy them back. David Norwood nipped in to buy 15,000 shares at 633p. Bruce Smith bought 7,750 also at 633p. We can't be sure if this was just a ploy to encourage PI`s or simply fellow directors buying what they believe to be cheap shares.
There will of course be those who advocate the use of CFD `s and Spread betting
- they have, after all helped some lucky PI`s to level the playing field somewhat, rather than allowing the big city players have their cake and eat it. All the same, the new breed of trader is making life much more unpredictable, with ever increasing volatility amongst the small cap sectors in particular. When volumes increase via CFD`s and Spread betting in otherwise illiquid shares - so does the volatility, this distorts the share price beyond normal parameters, often confusing the PI`s - which can often lead to un necessary selling or buying activity.
PI`s trading CFDs quite often get caught up in hefty margin calls from their broker.
This can happen when the share price moves against their position, forcing the
broker to request additional funds above the usual 10% already leveraged. If the additional margin can not be raised, the client is then forced to sell at a loss -hence, forced seller. This then has a spiralling effect on the share price, adding to the already confused situation. Quite often, spooking investors holding the shares, who may be forgiven for thinking there is something wrong with the company.
The problem is not with CFD`s and Spread betting themselves, its with people who misuse derivatives and distort markets, not the derivatives themselves. The availability of CFD`s and financial Spread betting should have been hailed as a welcome boost for the small PI`s. Unfortunately, the vast majority of PI`s who use either CFD`s or Spread betting do so at a loss. Not necessarily at their own misguided use, but outside, or should I say "insider " traders, dealers shadowy manoeuvrings. Surely it follows that market investing is being destroyed for the mass in favour of the wealthy - big hitters.|
|aphrodites: So our friendly CI friend has not shown his hand yet.
Did he think the announcement last week would hit the share price and allow him to buy back cheaply some of the stock he sold higher up?
Has he told a friendly MM to offer stock to give the market the impression there is a seller in the background?
Mark my words there are games being played here with the share price.
This is hardly the sort of volatility the new management of IOV wants to see at a time when they are trying to establish stability and a reputation for delivering shareholder value.
IOV-(MLB) has been part of the C.I. mafia for far too long. The sooner these so called investors remove themselves from the scene, the sooner the share price will move back up. But I fear they will be back playing their old games.
My guess is the new IOV management will introduce a sizeable partner shortly who will be shown to have taken these players on at their own game. And with a bit of luck stuffed them solid!!!!|
|northwards: the rumour and conjecture seem to point, increasigly, to some kind of deal involving SKP and that all may be revealed come Wednesday. i'm encouraged by SKP's weakness - if it were moving the other way, i'd be worried.
edit - additional IOV share placing to fund a part aquisition ? hence the IOV share price being held back to make the deal appealing to our friends in the City??|
|alibongo612: Drans,you are clearly a fan of old management and imo rightly so as everything that has come to fruition since their exit was most likely instigated by them only to be born following the long gestation period which is the norm in this sector.
From that comment you can conclude that I do not share northwards stated view of old management.
However it is irrelevant, IOV has moved on and it is indisputable that new management have a big advantage over old in that they have the support of the institutional shareholders which is essential.As a result they will be given time to deliver.
I do not share your view re R&D as historically ML outsourced all Pharma Research.Indeed the only Research carried out in house related to gene therapy as a result of the retention of the R team they inherited when they acquired Cobra.
Therefore the potential to create new products remains albeit that they are more likely to result from corporate transactions.
This is illustrated by the acqn of Q which has a first class team of formulation scientists who are more than capable of creating what are effectively new respiratory products which is where IOV's current focus lies.
As for the cost of downsizing I feel sure this will have already been fully provided for.
With regard to the Baxter deal I have already given my opinion which appears to have been confirmed by steddieddie's post 1583.However I would add that if the upgrade by JP Morgan was as a result of that deal its potential is much greater than I envisaged which must surely feed through to the IOV share price.|
If a takeover does happen and as the experts believe it would be "Skye" taking over IOV with the blessing that the IOV management takes the helm, there might be a need for some form of cash raising exercise.
But the size of this will depend on whether the institutional holders of IOV expect some form of premium to be paid for their shares.
However, if instead the argument is made forcefully that a merger; with the shares remaining at around current levels would be a better bet to bring these two new companies together, then very little, if any cash, would be needed.
It was suggested to me today that certain parties have an interest in keeping the IOV share price subdued and not moving far from where we are at the present time.
Would an Investment Bank be so devious as to manipulate IOV's share price to make this option more palatable to Skye shareholders?
On the other hand if the two merged at around current share price levels and it was seen to be a marriage in heaven then the upward potential for the new company would immense.
Could it be that as opposed to breaking up Skye an equation like this might have been broached to several large IOV shareholders over the weekend?|
Innovata share price data is direct from the London Stock Exchange