13th Jan 2020 09:19
(Alliance News) - Vectura Group PLC is looking at two new royalties in 2020, the company said on Monday, as its battle with GlaxoSmithKline PLC continues.
The Chippenham-based firm, which helps drug companies bring inhaled medicines to market, said performance in 2019 met expectations, both in terms of revenue and adjusted earnings before interest, tax, depreciation, and amortisation.
Highlights during the year included progress on partnered development programmes as well as the awarding of USD200 million in damages in a lawsuit against FTSE 100 pharmaceutical giant GSK.
The legal battle related to a patent infringement claim against Glaxo related to Ellipta, an inhaler product. Glaxo had agreed a licence to technology covered by a Vectura patent, which expired in 2016. GSK did not renew the agreement, leading to Vectura's lawsuit.
GSK has appealed the ruling, and a decision is due in the first quarter of 2021. Vectura has ended proceedings in the UK to focus on the US litigation.
Looking to 2020, Vectura will get USD11 million if VR315 is approved in the US as well as a mid-teen percentage sales royalty. It will get USD5 million if QVM149 is approved in Europe, and a low-single-digit royalty on sales. Both are proposed treatments for asthma.
Vectura will report annual results on March 17. Shares were flat on Monday morning in London at 100.79 pence each.
By George Collard; georgecollard@alliancenews.com
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