Vectura sees FY revenues and earnings 'at least' in line with expectations

Pharmaceuticals company Vectura said on Monday that its base business had continued to perform well in 2019.

Vectura told investors that its operational performance had delivered revenues and adjusted underlying earnings "at least" in line with board expectations, with closing cash and cash equivalents of approximately £74m.

Given the AIM-listed group's strong cash position and a strategic shift to a more services-based, lower-risk business model, Vectura also announced plans to return £60m in cash to shareholders.

Vectura was awarded damages and on-going royalties amounting to an estimated $200m following a US Jury verdict in a patent litigation suit against GlaxoSmithKline, subject to appeal.

Looking ahead, Vectura expects to see the approval of VR315 and QVM149 products in 2020, while revenues from development services were also projected to build momentum as it moves towards a development services model.

Chief executive Will Downie said: "Both the recent re-filing of generic Advair and the US Jury verdict in our favour in May 2019, in the GSK litigation, offer the potential for significant value.

"As Vectura transitions in 2020 to a more services-focused model, related new business deals will begin to bring the future shape of the company into focus. This is an exciting time for the group."

As of 0825 GMT, Vectura shares were down 2.57% at 98.21p.