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LONDON (Alliance News) - Vectura Group PLC on Tuesday said its pretax loss narrowed in the first half thanks to robust royalty sales from its partnered products and said one of its products met its primary endpoint in a recent study.
The FTSE 250-listed company, which develops treatments for respiratory diseases, said its pretax loss for the half to the end of September was GBP5.0 million, narrowed from a GBP8.7 million loss a year earlier, as a rise in revenue was offset by higher research and development spending.
Earnings before interest, taxation, depreciation and amortisation were up 57%, however, to GBP4.7 million, as revenue rose to GBP26.1 million from GBP19.4 million a year earlier, driven higher by a sharp increase in royalty income from partnered products. Royalty revenue from products marketed by pharmaceutical giants Novartis AG and GlaxoSmithKline PLC now accounts for 65% of Vectura's total royalty sales, up from 43% a year earlier.
The company generates royalty revenue from Novartis for the Seebri Breezhaler and Ultibro Breezhaler products, and from the Relvar/Breo, Anoro and Incruse Ellipta products with Glaxo.
"With my first set of results as CEO, I am delighted to report that Vectura is continuing to make very good progress with robust financial performance reflecting good pipeline progress and significant increases in partnered product sales," said Chief Executive James Ward-Lilley.
"We will continue to maintain a strong technology platform to ensure Vectura remains at the forefront of inhalation science. Our priority remains to build a strong hybrid business model which through partnering, clinical development and progressively building a specialist commercial capability maximises our unique capabilities, manages risk and delivers strong sustained shareholder value," he added.
Vectura also said the Ultibro Breezhaler, marketed by Novartis, met its primary endpoint and showed superiority to rival treatment Seretide in reducing chronic obstructive pulmonary disease exacerbations over a 52-week treatment course.
Shares in Vectura were up 1.1% to 171.20 pence on Tuesday morning.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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