Vectura reaches new milestone in VR315 project

Vectura Group, a pharma company specialising in treatments for respiratory diseases, has recorded revenues of three million dollars under an agreement signed a year ago for the development, manufacturing and commercialisation of VR315 with an international pharmaceutical company.

The revenue total includes the realisation of $2.0m of deferred revenue which was received in March of this year.

The firm said it is eligible to receive up to a further $32m once it achieves future pre-determined development milestones, which, together with the initial payment of $10m in August 2011, total $45m. In addition, Vectura will receive a royalty from all US sales of VR315.

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VR315 is the company's lead asthma/chronic obstructive pulmonary disease generic programme.

The firm also said its performance since April 1st has been in line with expectations.

Dr Chris Blackwell, Chief Executive of Vectura said: "The new financial year has seen continued strong progress across our key pipeline products and the company's financial performance has been in line with the board's expectations.

"We anticipate a number of major catalysts in the second half of 2012, including the EU filing of QVA149 and the launch of NVA237 in Europe. As these programmes mature, we expect the resultant milestones and royalties to transform our revenue streams and financial profile, making Vectura a self-sustainable, cash-generative company, which will provide a strong platform for the next chapter in the company's growth."

The share price rose 4.86% to 75.50p by 13:54.

NR