VEC.L Share News (VEC)

(ShareCast News) - Inhaled airways disease device and formulation business Vectura Group announced on Friday that it has signed a development and licence agreement with Mundipharma International Corporation and a US independent associated company as the global development and commercialisation partner for the VR2076 pressurised metered dose inhaler ICS/LABA/LAMA triple programme.The FTSE 250 firm said that in December 2015, the companies entered into a feasibility and option agreement and following successful completion of the feasibility work, which Vectura was responsible for, Mundipharma and the US associated independent company have now confirmed they will exercise the option to develop and commercialise VR2076 initially in asthma.It said the exercise of the option triggers a payment to Vectura of €1.5m.The group's research and development investment guidance for 2016 and 2017, provided recently in its interim results statement in November, remained unchanged.Further total potential milestone payments up to €46.5m would be receivable linked to development, regulatory and launch progress of the programme as well as royalties on any future net sales of the product.The royalty rate on the product development programme, where Vectura has been responsible for the formulation development, would initially be around a mid-single digit percentage but could increase depending on sales.Vectura said the agreement also includes the potential for further development of the triple combination treatment for chronic obstructive pulmonary disease.If Mundipharma decides to develop the programme in COPD, Vectura is eligible for further potential milestones linked to the regulatory progress of the programme up to €20m as well as royalties on any future net sales of the product.The royalty rate on net sales for the COPD indication product would be the same as the asthma indication product.In addition, Vectura would also receive one-off undisclosed sales milestones should net sales of both the asthma and COPD products achieve certain predetermined levels.The first regulatory filings of VR2076 are planned in the EU for late 2022/early 2023."This agreement extends our relationship with Mundipharma by building on the existing flutiform collaboration and, along with the Novartis QVM149 DPI programme, increases the group's exposure to the important emerging triple combination class," said Vectura chief executive James Ward-Lilley."Fixed combination triple therapy treatment is expected to develop strongly and is likely to take significant share from both existing use of multiple 'free combination' treatments as well as from the large volume of ICS/LABA combination treatment currently used."The recent changes to the GOLD guidelines in November highlight the importance of a triple therapy in asthma given the likelihood of reduced future usage of ICS in COPD patients."