16th Feb 2017 07:49
LONDON (Alliance News) - Vectura Group PLC on Thursday said it achieved the GBP9.0 million calendar year royalty cap on net sales of drugmaker GlaxoSmithKline PLC's Ellipta products in 2016, a year earlier than it had previously guided.
Respiratory treatment development company Vectura said the royalty cap was met thanks to the "continued strong performance" of Glaxo's products, as reported by Glaxo earlier this month.
Under a legacy Skyepharma deal with Glaxo, Vectura receives a low single-digit royalty on net sales of Glaxo's Ellipta products, subject to a cap of GBP9.0 million per calendar year. Vectura said it will record GBP5.4 million of this capped amount in its current financial year to end March 31, which is the income generated since June 10, the effective date it merged with Skyepharma.
Vectura said this is additional to the royalties earned in respect of a second legacy agreement signed with Glaxo, which is subject to a GBP13.0 million calendar year cap, and this was "materially achieved" before Glaxo decided not to extend the term of this deal as announced in July.
As such, for the period between April 1 and December 31, Vectura said it will record GBP7.3 million royalties under the Vectura-Glaxo legacy agreement.
"The merger with Skyepharma has added to the group's growing revenue streams and combined with anticipated pipeline and partnered programme developments, Vectura is well positioned to capture a growing share of the evolving respiratory market," said Vectura CEO James Ward-Lilley.
By Hannah Boland; [email protected]; @Hannaheboland
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