(Alliance News) -Â Shares in Vectura Group PLC rose on Thursday after the company swung to a profit for 2020 and unveiled plans for a GBP115 million special dividend.
Vectura is a pharmaceuticals business based in Chippenham, England and focused on the development of inhaled products.
Revenue for 2020 rose 6.9% to GBP190.6 million, with the company swinging to a profit of GBP131.3 million from 2019's loss of GBP26.1 million.
Vectura's performance was boosted by GBP124.9 million in exceptional income, largely due to GBP121.1 million for damages and interest associated with the enforcement of a patent covering three US GSK Ellipta products.
"After the positive outcome of the appeal in the GSK US patent litigation, initial proceeds were received by Vectura in January 2021. Following a review of the group's allocation priorities, we have today announced that the board has approved, in principle, a special dividend of approximately GBP115m which is intended to be paid to shareholders during 2021," Chief Executive Will Downie said.
In addition to the litigation award, Vectura's 2020 performance improved as research & development expenses fell 35% to GBP23.8 million.
Adjusted earnings before interest, taxes, depreciation and amortisation for 2020 rose 42% to GBP61.5 million.
Looking out, Vectura said: "The operational focus of the business in 2021 continues to be on the execution of our services based strategy. Building on the positive momentum seen in 2020, Vectura expects the revenue contribution from CDMO service based agreements to more than triple versus 2020. Revenues from co-development contracts are expected to remain broadly in-line with 2020."
It expects research & development costs in 2021 to be within a range of GBP22 million to GBP25 million.
Shares in Vectura were up 3.8% at 120.56 pence in London on Thursday.
By Lucy Heming;Â lucyheming@alliancenews.com
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