Vectura revenues in line

Vectura Group, a device and formulation business for inhaled airways products, expects full year 2017 revenue to be in line with the board's expectations.

The group's key inhaled growth products continue to perform in line with expectations.

flutiform product supply revenue in the second half was in line with guidance provided at the time of the group's 2017 interim results in September 2017.

flutiform Q3 in-market net sales were €47.8 million, up 12% at constant exchange rates (CER) compared to the same period in 2016, with 19% (CER) growth in Japan.

Ultibro Q3 net sales were $101 million, with 18% growth in Europe year-on-year.

Royalties from the GSK Ellipta products achieved a £9 million annual cap in Q3.

Following delays in the approval of the group's US generic Advair programme (VR315 US) alongside positive pipeline developments, including the first launch of the BreelibTM FOX device, the group has completed a review of its investment strategy.

Based on this, Vectura will increase its focus on relatively lower risk, high value development opportunities with known molecules across its whole non-partnered pipeline. Further investment in relatively higher risk, novel molecule, early stage programmes will cease and opportunities to partner existing programmes of this type will be sought.

Vectura will seek to partner its early stage novel molecule programme VR588 and, with its co-development partner UCB, will also jointly seek a partner for VR942, the inhaled biologic programme which completed a Phase I trial during 2017.

Mundipharma have informed the group of their decision to stop the development of the pMDI triple therapy for asthma and COPD (VR2076), which is currently in an early formulation phase. Given the early stage of this asset, this is not expected to have a material impact on the group's revenues in 2018.

Given the in-line performance of the group's revenue drivers in H2 2017, the board maintains its local currency revenue growth expectations for 2018. Were current exchange rates to continue through 2018, sterling reported revenues would be reduced by approximately £5.0 million, equating to an impact of approximately £2.5 million at the gross margin level.

At 8:15am: (LON:VEC) Vectura Group PLC share price was -0.45p at 119.35p