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Vectura to focus on lower risk, higher value opportunities
Medical inhaler group Vectura said 2017 full year revenue should be in line with expectations, adding that a strong second half delivered closing cash and cash equivalents of around £104m net of £1.4m outflows in respect of the £15m share buyback which started in November.
It added that it was now going to focus on "relatively lower risk, high value development opportunities with known molecules" across its whole non-partnered pipeline after delays in the approval of the group's US generic Advair programme alongside positive pipeline developments prompted an investment review.
"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. This reduction in the overall pipeline risk profile will enable further leverage of Vectura's core capabilities to deliver additional value from lower risk projects."
Vectura added that were current exchange rates to continue through 2018, sterling reported revenues would be reduced by approximately £5m, equating to an impact of about £2.5m at the gross margin level.
Costs to deliver the company's R&D "Operational Excellence" initiative are estimated at approximately £1m within exceptional items in 2017 and a further £0.5m within exceptional items in 2018.