Vectura achieves £9m royalty cap

Vectura Group says it has achieved the £9m calendar year royalty cap on net sales of GSK’s Ellipta products in 2016.

This was a year earlier than previously guided, and was based on the continued strong performance of Ellipta products and the group’s subsequent receipt of its royalty statement from GSK.

Vectura receives a low single-digit percentage royalty on net sales of Ellipta products under a legacy Skyepharma agreement with GSK, subject to a cap of £9m per calendar year.

The group said it would record £5.4m 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 £13m calendar year cap,” said Vectura.

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 £7.3m royalties under this legacy agreement.

Story provided by


Claim 12 issues of MoneyWeek (plus much more) for just £12!

Let MoneyWeek show you how to profit, whatever the outcome of the upcoming general election.

Start your no-obligation trial today and get up to speed on:

  • The latest shifts in the economy…
  • The ongoing Brexit negotiations…
  • The new tax rules…
  • Trump’s protectionist policies…

Plus lots more.

We’ll show you what it all means for your money.

Plus, the moment you begin your trial, we’ll rush you over THREE free investment reports:

‘How to escape the most hated tax in Britain’: Inheritance tax hits many unsuspecting families. Our report tells how to pass on up to £2m of your money to your family without the taxman getting a look in.

‘How to profit from a Trump presidency’: The election of Donald Trump was a watershed moment for the US economy. This report details the sectors our analysts think will boom from Trump’s premiership, and gives specific investments you can buy to profit.

‘Best shares to watch in 2017’: Includes the transcript from our roundtable panel of investment professionals – and 12 tips they’re currently tipping. The report also analyses key assets, including property, oil and the countries whose stock markets currently offer the most value.