Vectura Group plc Vectura achieves £9 million royalty cap (0193X)

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RNS Number : 0193X

Vectura Group plc

16 February 2017

Vectura Group plc

Vectura achieves GBP9 million royalty cap from GSK Ellipta(R) products

Chippenham, UK, 16 February 2017: Vectura Group plc (LSE: VEC) ("the Group"), an industry-leading inhaled airways disease focused business, announces that, based on the continued strong performance of GSK's Ellipta(R) products reported by GSK in its Q4 2016 results announced on 8 February 2017 and the Group's subsequent receipt of its royalty statement from GSK, it has achieved the GBP9 million calendar year royalty cap on net sales of these products in 2016, a year earlier than previously guided.

Vectura receives a low single-digit percentage royalty on net sales of GSK's Ellipta(R) products (Breo(R) /Relvar(R) Ellipta(R) , Anoro(R) Ellipta(R) and Incruse(R) Ellipta(R) ) under a legacy Skyepharma agreement with GSK, subject to a cap of GBP9 million per calendar year. The Group will record GBP5.4 million of this capped amount in its 2016 revenues, representing income since 10 June 2016, the effective date of the merger with Skyepharma.

This is additional to the royalties earned in respect of a separate Vectura legacy agreement with GSK which was subject to a GBP13 million calendar year cap. As announced in July 2016, this cap was materially achieved before GSK decided not to extend the term of this latter agreement. Accordingly, for the financial year 1 April to 31 December 2016, the Group will record GBP7.3 million royalties under this legacy agreement.

James Ward-Lilley, Chief Executive Officer, commented:

"We are pleased to see continued momentum in Vectura's recurring revenues driven by the strong performance of our partnered marketed respiratory products. The merger with Skyepharma has added to the Group's growing revenue streams and combined with anticipated pipeline and partnered programme developments, Vectura is well positioned to capture a growing share of the evolving respiratory market."

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Enquiries

 
Vectura Group plc                                                [phone] 
Andrew Derodra - Chief Financial Officer 
Fleur Wood - Director Communications 
Elizabeth Knowles - Director Investor Relations and Analysis 
 
Consilium Strategic Communications                               [phone] 
Mary-Jane Elliott / Sue Stuart / Jessica Hodgson                  [e-mail] 
 
 

About Vectura

Vectura, a FTSE250 company listed on the London Stock Exchange (LSE: VEC), is an industry-leading inhaled airways disease focused business with proprietary formulation and devices across DPI, pMDI and "smart" nebulisation platforms. With our extensive range of technologies, capabilities and collaborations, we believe we can become a leader in the development of inhalation products, increasing our ability to help patients suffering from respiratory diseases. In June 2016 Vectura completed a merger with Skyepharma PLC.

Vectura has seven inhaled, four non-inhaled and ten oral products marketed by partners with growing global royalty streams, and a portfolio of drugs in clinical development, a number of which have licence agreements with several global pharmaceutical and biotechnology companies including Hikma, Novartis, Sandoz, Mundipharma, Kyorin, Baxter, GSK, UCB, Ablynx, Grifols, Chiesi, Almirall, Janssen, and Tianjin KingYork.

For further information, please visit Vectura's website at www.vectura.com.

This information is provided by RNS

The company news service from the London Stock Exchange

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February 16, 2017 02:00 ET (07:00 GMT)