LONDON (dpa-AFX) - Pharmaceuticals company Vectura Group plc (VEC) Tuesday said it expects revenue and adjusted EBITDA for 2020 to be ahead of Board expectations. The outlook reflects the FDA approval in December 2020 of VR315 (US), generic Advair, partnered with Hikma.
Looking further ahead, Vectura expects to see continued progression against its strategy with CDMO revenues in 2021 expected to more than triple versus 2020, building on the positive momentum seen in 2020.
In its pre-close trading update, the company reported strong operational performance, underpinned by a resilient base business. The company said there was no disruption to product supply chain, despite COVID-19 pandemic.
The company noted that approval of generic Advair triggered milestones of $11 million, and approval of Enerzair Breezhaler in Japan and Europe triggered milestones of $6.25 million.
The company further said appeal upheld damages and on-going royalties awarded to Vectura amounting to an estimated $200 million, following US Jury verdict in patent litigation against GSK in the US.
Will Downie Chief Executive Officer of Vectura, said, 'The business has also proven resilient in the face of wider challenges posed by the Coronavirus outbreak. We have continued to execute on our inhalation CDMO strategy, signing 18 deals during 2020, with revenue from this new business being recognised in the second half of the year. This is an exciting time for the Group and we look forward to continued positive momentum in 2021.'
The company noted that flutiform product supply revenues benefited from partner stock builds in both 2019 and 2020. These stock builds are not expected to recur in 2021.
From 2022 onwards, Vectura product supply volumes are expected to align more closely with underlying forecast growth in-market sales.
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