Vectura Group narrows loss as H1 revenue rises 71%

Gross profit for the six months to September was up by 86% to 21.2m from 11.4m due to a rise in product licensing milestones as a proportion of total revenue.

R&D expenditure rose by 15% to 18.5m from 16.1m. Vectura said it expected investment to continue to increase as key products moved to late-stage development.

Royalty income increased by 15% to 6.8m, with ADVATE contributing 72% of the total at 4.9m, up from 3.9m.

Product licensing revenues were 7.1m, previously 0.5m. These included 5.8m of milestones received from Sandoz for VR315, which were recognised in full during the period.

Technology licensing revenues rose to 5.1m from 2.7m. Pharmaceutical Development Services revenues exceeded expectations at 3.6m, up from 3.1m.

The group had a net cash inflow of 2.3m, compared with a 5.0m outflow a year ago.

Cash and equivalents at 30 September were 76.3m, up from 74.0m at 31.

Chief executive Chris Blackwell said Vectura had made considerable financial and operational progress since the beginning of the financial year.

The start of the Phase III NVA237 trial and impressive data on improvement in lung function shown with QVA149 had increased confidence in the market potential of both products for the treatment of patients with chronic obstructive pulmonary disease.