LONDON (Alliance News) - Respiratory treatment development company Vectura Group PLC Wednesday said it more than halved its losses in its recent financial year, after reporting a 20% increase in revenues, due to a substantial increase in royalty revenues.
For the year ended March 31, the group said it narrowed its losses by 54% to GBP4.8 million from a GBP10.4 million loss the prior year, supported by a 20% increase in revenues to GBP36.5 million, up from GBP30.5 million last year.
Vectura said that it managed to significantly reduce its losses due to the increase in revenues and lower research and development costs, while it said revenue growth in the period, was driven by a 25% increase in royalty revenues.
"The past year has been very significant for Vectura, driven by the tremendous progress made from the approvals and commercialisation of partnered assets and in the acquisition of Activaero," said Chief Executive Chris Blackwell in a statement.
Vectura bought Activaero, a private German pharmaceutical company focused on the development of products for the treatment of respiratory diseases, for EUR130 million in March.
Vectura specialises in the development of products for the treatment of airway-related diseases. It said that in the year ahead, it expects the continued commercialisation of its Seebri Breezhaler, Ultibro Breezhaler and AirFluSal Forspiro products, which it said will increase its growing royalty streams.
Vectura has eight products marketed by its partners and a portfolio of drugs in clinical development, a number of which have been licensed to major pharmaceutical companies. It also has development collaborations and licence agreements with several pharmaceutical and biotechnology companies, including GlaxoSmithKline PLC and Novartis AG.
Vectura said it earned significant milestone revenues during the year, following approval of Ultibro Breezhaler in Europe and Japan, a development milestone earned in relation to VR315 in the US, and following the approval of AirFluSal Forspiro in Germany, Romania and Belgium.
In a separate statement Wednesday, Vectura said its has seen positive results from its once-daily Ultibro Breezhaler, versus combination therapy. It said that in a study with over 900 chronic obstructive pulmonary disease patients, its once-daily Ultibro Breezhaler showed superior improvements in lung function at 26 weeks, compared to once-daily tiotropium plus twice-daily formoterol in moderate-to-severe chronic obstructive pulmonary disease patients.
Vectura shares were up 1.4% at 129.25 pence Wednesday morning.