(Alliance News) - Pharmaceutical business Vectura Group PLC on Tuesday said it expects its 2020 revenue and adjusted earnings before interest, tax, depreciation and amortisation to be ahead of board expectations.
Vectura said it expects to beat its own forecasts due to receiving US Food & Drug Administration approval in December for a generic version of drugmaker GlaxoSmithKline PLC's VR315 Advair Diskus programme, for which it partnered with London-based generic pharmaceuticals company Hikma Pharmaceuticals PLC.
The regulator gave Hikma the all clear to launch 100 microgram, 50 microgram and 250 microgram and 500 microgram doses for the asthma treatment in the US last month. As a result of the approval, Vectura will receive a milestone payment of USD11 million and will earn a mid-teen royalty on net sales of the product.
"The business has also proven resilient in the face of wider challenges posed by the coronavirus outbreak. We have continued to execute on our inhalation contract development and manufacturing organisation strategy, signing 18 deals during 2020, with revenue from this new business being recognised in the second half of the year," said Vectura Chief Executive Will Downie.
Looking ahead, Vectura said it expects to see "continued progression against its strategy with CDMO revenue in 2021 expected to more than triple versus 2020," and from 2022 onwards, its product supply volumes are expected to align more closely with underlying forecast growth in-market sales.
Additionally, Vectura said GlaxoSmithKline will pay USD164 million by the end of January to settle a patent litigation concerning its US patent 8303991. Back in November, the US Court of Appeals for the Federal Circuit denied GlaxoSmithKline's motions for judgment as a matter of law, a new trial on infringement and for a new trial on damages in litigation concerning Vectura's US patent. The award of USD89.7 million in damages to Vectura has been upheld, it added.
Shares in Vectura were down 0.2% at 123.60 pence each in London on Tuesday.
By Zoe Wickens; zoewickens@alliancenews.com
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Hikma Pharmaceuticals (HIK)
Glaxosmithkline (GSK)