CSRT.L Share News (CSRT)

Drug delivery specialist Consort Medical has won a multi-year deal to supply a dry powder inhaler that will require significant expansion of its manufacturing facilities.The DEV610 inhaler, which is in the FTSE Smallcap company's development pipeline, has been signed up by an as-yet-unnamed global pharma company in a multi-year contract with an initial exclusivity period.The group said it was a "significant opportunity" for its Bespak division and required it to build a further dedicated building at the King's Lynn site to accommodate the additional moulding and assembly capacity to produce the contracted volumes.Broker Jefferies said it believed that the fact that the contract was disclosed less than one week before the company provides its first-half results on December 4th "points to the materiality of this contract" and the fact that a manufacturing contract has been signed signals that the development project is progressing well. Consort said revenues from the contract will be dependent on sales following regulatory approval and launch of any products utilizing the device and its initial launch is expected in 2015. Chief Executive Jonathan Glenn said this was a major contract that further leveraged the group's operational and regulatory expertise in the production of high volume, premium quality drug delivery devices. Jefferies added that the contract had similarities with Consort's win of a British American Tobacco Oxette e-cigarette which implied the DEV610 "could have blockbuster potential"."With this announcement, it is clear that FY2015/16 could be a catalyst year for Consort Medical's revenue growth and forecasts [...] However, while waiting for the FY2015/16 opportunities to materialise, investors will have to brace themselves for high capex investment levels."Shares in Consort were unmoved at 862p at 09:33 on Thursday. OH