Vectura agrees new licensing deal with Sandoz for asthma treatment

Friday, Aug 05 2011 by
Vectura agrees new licensing deal with Sandoz for asthma treatment

As share prices tumbled in London this morning, drugs developer Vectura (LON:VEC) took the honours for the highest riser during early trading following news that it had signed a licensing deal with Sandoz, the generics division of Novartis, for its VR315 asthma treatment. The exclusive deal covers the development and marketing of VR315, a combination therapy for asthma/COPD, in the rest of world (RoW) territory. That territory excludes the US and those countries included in an existing VR315 European license with Sandoz. Shares in Vectura rose by 4p to 100.5p.

Under the terms of the VR315 RoW agreement, Vectura will receive a royalty on net sales and a margin on the commercial manufacture and supply of the dry powder inhaler device used to deliver VR315 for RoW. Vectura is also eligible for milestones and advance pre-launch royalties worth up to €8 million; €2.5 million of which are expected to be received by 30 September 2011. Sandoz will be solely responsible for any development work required and for obtaining marketing authorisations throughout the RoW territory, which includes Japan, Canada, South America and Australia.

Dr Chris Blackwell, the chief executive of Vectura, said: "VR315 has a large market opportunity in these rapidly expanding territories, where patient access to good, affordable treatments for asthma and COPD is of great importance. This agreement extends our existing relationships with Sandoz and further endorses Vectura’s respiratory expertise and GyroHaler® technology.”

Combination therapy for asthma/COPD is the biggest and fastest growing sector of the respiratory market, with annual sales currently exceeding US$11 billion. Global annual sales in territories outside Europe and the US are estimated at US$2.5 billion and are continuing to grow. Vectura exclusively licensed the European rights for VR315 to Sandoz in March 2006. In December 2007, it licensed Sandoz the European rights to a second combination asthma/COPD product, VR632, delivered with the same device.


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Vectura Group plc is engaged in research, development and commercialization of therapeutic products and drug delivery systems for human use. The Company's products include Ultibro Breezhaler (European Union (EU) and Rest of World (RoW)) - LABA-LAMA; Seebri Breezhaler (EU and RoW) - LAMA; AirFluSal Forspiro (EU and RoW) - ICS-LABA; ADVATE (Global) - Antihaemophilic Factor (Recombinant); Adept (Global) - Icodextrin; Anoro Ellipta (Global) - LAMA-LABA; Relvar Ellipta/Breo Ellipta (Global) - ICS-LABA, and Incruse Ellipta (Global) - LAMA. Its product pipeline includes VR588, VR475, VR647, VR942, VR179, VR736, VR096, VR876, VR315, VR506, VR632, Seebri Neohaler and VR465. Its dry powder inhalers (DPI) include GyroHaler, Lever-operated, Open-inhale-close and Unit Dose DPI. Its smart nebuliser delivery systems provide targeted inhalation therapy for applications where precise and targeted delivery of a drug to the lungs is needed. Its smart nebulizer delivery systems include AKITA JET and FOX. more »

LSE Price
73.35p
Change
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Mkt Cap (£m)
488.1
P/E (fwd)
14.6
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n/a



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