Vectura Share Discussion Threads

[cumnor] 19/11/2020 18:39

Great stuff-quite a positive slant to this RNS and cannot imagine GSK appealing this. $200ml could be baseline as ongoing sales of inhalers likely to increase post Covid.

[volvo] 19/11/2020 18:31

Vectura Group plc

19 November 2020

Vectura provides update on GSK litigation

Chippenham, UK - 19 November 2020 : Vectura Group plc (LSE: VEC) ("Vectura"), an industry-leading inhalation CDMO, announces that the United States Court of Appeals for the Federal Circuit has denied GlaxoSmithKline's (GSK) motions for judgment as a matter of law, a new trial on infringement and for a new trial on damages in litigation concerning Vectura's US patent 8303991. The United States Court of Appeals for the Federal Circuit has therefore upheld the District Court of Delaware ruling on post-trial motions.

In September 2019, the District Court of Delaware issued the following ruling on the parties' post-trial motions:

-- Award of US$89.7m in damages to Vectura on May 3, 2019 upheld
-- Ongoing royalties of 3% on US sales of certain infringing GSK Ellipta(R) products
-- Supplemental damages based on GSK's infringing sales of approximately US$10.5m
-- Pre-judgment interest at the prime rate of approximately US$6.7m
GSK has 30 days to file a petition for rehearing.

Will Downie, Chief Executive Officer of Vectura, commented: "We are very pleased with the result of this appeal, which confirms the validity of our intellectual property and the decision to progress this litigation with GSK. Once we have further clarity regarding final settlement and potential timing of receipts, we will provide a further market update."

Background to litigation

In July 2016, Vectura filed a patent infringement lawsuit against GSK in the United States District Court of Delaware claiming that sales of three of GSK's Ellipta products, Breo(R) Ellipta(R) , Anoro(R) Ellipta(R) and Incruse(R) Ellipta(R) , infringed certain Vectura formulation patents.

Vectura and GSK had entered into an agreement in 2010 under which GSK had taken a license to formulation technology covered by a Vectura patent family. These licensed patents expired in July 2016. At this time GSK had the option to license additional patent families under the original agreement but declined to do so, resulting in the filing of the lawsuit by Vectura.

From the outset, Vectura has been open to finding a mutually acceptable solution to avoid prolonging the dispute. However, the litigation progressed to a jury trial in April 2019 with a subsequent appeal hearing in October 2020.

As reported in March 2020, Vectura has estimated that damages, accumulated interest and ongoing royalties could amount to approximately $200m in total. The precise amounts to be received are dependent on the future US sales of the infringing products as well as sales for historical periods yet to be reported by GSK.

Amounts received will be subject to taxation in the UK. Vectura expects to pay tax at rate of approximately 10% on these proceeds.

- Ends-

Vectura Group plc

[pdoc] 19/11/2020 18:18

I am not sure if Socrates showed pride.

He did influence cynicism. Using that, I would think Socrates would consider Polaris to be a paid ramper than anything else.

[volvo] 19/11/2020 18:07

Mathmatics....13pc up lift, about £75m.

Amount from GSK $202m....is £152m....but then bid possibility? Dont forget Advair approval too.

We need another 20pc tommorrow

[base7] 19/11/2020 17:49

Sadly not Gregb -as ever too busy dealing with the minutea of life -but no complaints as I have a large number (for me )
Let’s hope this is the beginning of a bull run ending with a clean exit .
Hik will only buy us if they expect very high returns from Advair & Elipta range in due course & could sell off the parts they don’t want -which shouldn’t be too difficult due to our partnerships with major companies .

[cumnor] 19/11/2020 17:42

Nice surprise to come in to. Wasn't expecting that. Gamechanger-and 140 base value on this news alone.

[a1ord53] 19/11/2020 17:27

6 mil shares traded !

[gregb] 19/11/2020 17:26

Base 7, I hope you went with your instinct this morning and bought a shed load of these. Very well done to you if you did!

[volvo] 19/11/2020 17:05

best exactly, a complicated ring, but better VEC are out the way, either GSK (likely) or Hikma stepping up.

[best1467] 19/11/2020 16:59

Yes on the back of today’s news is a positive for potentially 3 reasons 1st the substantial cash 2nd increases the likelihood of a takeover GSK but Hikima would not be happy about that 3rd and the most significant is It takes any doubt of GSK been able to Block the Elipta generic programme which also increases the chance greatly of option 2 the best news for several years

[volvo] 19/11/2020 16:54

...just illustrating possible senarios

[volvo] 19/11/2020 16:53

yes i know

[jimboyce] 19/11/2020 16:49

Jan 2018 article

[justiceforthemany] 19/11/2020 16:45

That was Jan 2018 but it tells us the ballpark; $1.7Bn was rumoured back then so around double the current share price £2+

[volvo] 19/11/2020 16:41

Rumours of $1.65bn GSK bid for respiratory partners Vectura

[volvo] 19/11/2020 16:29

If they bid they already have a credit of $250m

[justiceforthemany] 19/11/2020 16:29

Big question is the monster cash pile and how big a return could be coming to shareholders?
£82M Cash as of 30.6.2020 so this may be >£90M now

Add another $200M/£150M now
= £240M-£250M Cash

[justiceforthemany] 19/11/2020 16:26

GSK is strangely UP on this news. Must have been expecting to lose or perhaps they will launch a bid???

[volvo] 19/11/2020 16:25

VOLVO 9 Nov '20 - 16:13 - 10403 of 10458 Edit

Back in here today with 20k for the run up to Advair approval and GSK deciding to buy VEC out.

[volvo] 19/11/2020 16:24

Yes my thoughts entirely...GSK

[justiceforthemany] 19/11/2020 16:23

So market cap £695M but cash pile will be north of £250M!
Prime take over target.

[justiceforthemany] 19/11/2020 16:20

hxxps://news.bloomberglaw.com/health-law-and-business/glaxo-loses-bid-to-toss-vectura-verdict-over-lung-inhalers
Glaxo Loses Bid to Toss Vectura Verdict Over Lung Inhalers
Nov. 19, 2020, 2:58 PM

Also would be great if someone could detail the total amount Vectura will receive.
$90M is just the damages.

[volvo] 19/11/2020 16:18

GSK Litigation

Following a US Jury trial in May 2019, Vectura was awarded damages and estimated ongoing royalties amounting to approximately $200m, based upon the application of a 3% royalty rate to US sales of GSK infringing products for the period August 2016 to the expiration of Vectura's patent in mid-2021. Interest will also accrue on damages at the Treasury bill rate, compounded annually. No amounts have been recognised in the H1 2020 results in respect of these damages.

GSK has initiated an appeal in the US, with a hearing currently scheduled for 5(th) October 2020. Based on the present appeal briefing schedule, a decision is likely to be received before the end of Q1 2021.

[justiceforthemany] 19/11/2020 16:17

Question is how much of the total £250M cash pile will be returned to shareholders?

[lankysop] 19/11/2020 16:16

Please can you post a link to this from today please?