Vectura Group plc - Preliminary Results
07 June 2010
Strong financial performance supporting advanced pipeline progress
Chippenham, UK - 7 June 2010: Vectura Group plc (LSE: VEC) ("Vectura") today announces its preliminary results for the year ended 31 March 2010.
NVA237(COPD) Novartis initiated Phase III studies in June 2009 triggering a $7.5m (£4.5m) milestone receipt. An extensive package of data is being compiled and Novartis expects to file for regulatory approval in 2011
EU Sandoz continues to make good progress
US Vectura continues development whilst further assessing FDA requirements
VR632 (asthma/COPD) good progress continues with Sandoz on development for the European market
VR040 (Parkinson's disease) Phase II "at home" study on-going; results expected in 2010
VR496 (cystic fibrosis) Phase II proof-of-concept study on-going; results expected in early 2011
Expansion of pipeline three new products now under development: VR506 a generic steroid treatment for asthma and two speciality products VR461 and VR909
Boehringer Ingelheim GmbH ("Boehringer Ingelheim") collaboration agreement concluded in November 2009
QVA149 (COPD) Novartis initiated Phase III studies in April 2010 triggering a $7.5m (£5.1m) milestone payment. Novartis expects to file for approval in 2012
VR315 US receipt of $9.5m (£6.2m) from Sandoz in May 2010 in respect of the revised US agreement
Revenues increased by 29% to £40.1m (2008/09: £31.2m)
Gross profit up by 34% to £36.6m (2008/09: £27.3m)
Loss after tax reduced by 39% to £10.2m (2008/09: £16.7m)
Loss per share reduced by 38% to 3.2p (2008/09: 5.2p)
Cash and cash equivalents of £64.1m at 31 March 2010 (31 March 2009: £74m)
Investment in research and development up by 13% to £36.4m (2008/09: £32.3m)
Dr Chris Blackwell, Chief Executive of Vectura, comments:
"It has been a year that has provided good pipeline progress and opportunities for Vectura with three new products now under development and both NVA237 and QVA149 in Phase III clinical development. We re-acquired US rights from Sandoz for development of VR315 in March and will continue to move the development programme forward in a cost-effective manner whilst monitoring the regulatory framework and assessing third-party interest. Vectura retains the rights to the product outside the US and Europe which represents an important licensing opportunity.
"The expansion and progression of our product pipeline has been undertaken while focusing on our financial goal of becoming a sustainably cash-generative business following receipt of substantial milestone and royalty revenues from our partnered late-stage respiratory programmes. In the short-term, we will continue to manage cash carefully as we fund investment in our development activities from both current revenue streams and cash resources."
- Ends -
Chris Blackwell, Chief Executive and Anne Hyland, Chief Financial Officer, will host an analyst/investor briefing today at 10.00 a.m. GMT at the offices of Piper Jaffray. For further details please contact Juliet Edwards at Financial Dynamics on +44(0)20 7269 7125.
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
Notes for editors
Vectura Group plc is a company that 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 $25 billion. Vectura also develops products for other lung pathologies and non-respiratory diseases.
Vectura has eight products marketed by its partners and a portfolio of drugs in clinical and pre-clinical development, some of which have been licensed to major pharmaceutical companies. 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.
Vectura has development collaborations with several pharmaceutical companies, including Novartis, Sandoz (the generics arm of Novartis), Baxter, GlaxoSmithKline (GSK), Mylan and Otsuka. For further information, please visit Vectura's website at www.vectura.com
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.