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Vectura Delivers "Good" 2017 Results Despite Advair Disappointment

21st Mar 2018 08:52

LONDON (Alliance News) - Pharmaceutical firm Vectura Group PLC said Wednesday it delivered a "good" set of 2017 results with underlying profit and revenue growth despite "disappointing" delays to its generic competitor to GlaxoSmithKline PLC's blockbuster Advair drug.

For the twelve months of 2017, pretax loss was reported at GBP102.2 million. This was compared to GBP40.1 million for the nine-months ended December 2016. No pro forma full year pretax profit figures were provided.

On an adjusted, underlying earnings before interest, tax, depreciation and amortisation basis - which excludes exceptional items - it swung to a profit of GBP10.0 million for the twelve months of 2017 compared to a pro forma GBP2.6 million loss for the twelve months of 2016.

In July 2016, Vectura changed its financial year end from March 31 to December 31 shortly after completion of its all-share GBP441.3 million acquisition of Skyepharma PLC.

Underlying revenue for 2017 rose to GBP131.4 million from pro forma GBP126.3 million in 2016.

Vectura does not pay a dividend.

"It has been an important year of progress for Vectura," Chief Executive Officer James Ward-Lilley said. "We have delivered a good set of financial results, in line with market expectations, and our key partnered inhaled products, flutiform and Ultibro Breezhaler, have continued to show strong in-market growth."

"Notwithstanding the disappointing delays we have seen for our VR315 (US) generic Advair programme, we continue to see substantial value in the development of complex inhaled generics," Ward-Lilley added. "In light of this, we have extended our valuable inhaled generics portfolio. In addition, we have also progressed our enhanced therapy pipeline and fully delivered our merger integration plans."

"Our refocused investment strategy, announced in January 2018, is underpinned by a strong core business, tight financial discipline and a skilled workforce," Ward-Lilley added. "We are committed to fully leveraging the capabilities and technologies that differentiate us to maximise the value of our pipeline at a substantially lower cost and relative risk. We have clearly defined priorities and we look forward to a series of significant news flow catalysts during 2018."

Shares in Vectura were 2.3% lower at 78.80 pence on Wednesday.


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