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® 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 £9 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® products (Breo®/Relvar® Ellipta®, Anoro® Ellipta® and Incruse® Ellipta®) under a legacy Skyepharma agreement with GSK, subject to a cap of £9 million per calendar year. The Group will record £5.4 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 £13 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 £7.3 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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Vectura Group plc
+44 (0)1249 667700
Andrew Derodra – Chief Financial Officer
Fleur Wood – Director Communications
Elizabeth Knowles – Director Investor Relations and Analysis
Consilium Strategic Communications
+44 (0)20 3709 5700
Mary-Jane Elliott / Sue Stuart / Jessica Hodgson
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.