The Vectura Board has announced a proposed special dividend of approximately £40m to be accompanied by a share consolidation, both subject to shareholder approval, with a £10m on-market share buyback to commence following the share consolidation. The Board also intends to undertake a further on-market £10m buyback, to be announced in due course after the completion of the first tranche.
Other financial highlights include:
Total revenue of £91.7m, +14.8%
o Product supply revenue up 42.9% to £54.3m, driven by 45.8% growth in flutiform® product supply chain revenues to £48.4m
o As expected, royalty and other marketed revenue down 16.5% to £30.3m, following Q3 2018 expiry of EXPAREL® patents and a one-off milestone recognised in the prior period
o Development revenue up 26.8% to £7.1m, including EU filing milestone of $2.5m for QVM149
Gross profit declined by 1.3% compared to the prior period, impacted by normalisation of flutiform® supply chain margins and reduction in royalty and other marketed revenue
R&D costs of £24.5m reduced 9.9% versus prior period
Adjusted EBITDA of £25.1m, up 10.6% versus the prior period
Operating loss of £14.1m down from a loss of £30.2m in the prior period, as a result a lower charge for amortisation of intangible assets
Strong liquidity maintained with closing cash and cash equivalents of £105.9m
Awarded $89.7m in damages by trial jury for the infringement of the relevant asserted claim of Vectura's US patent by US sales of three of GlaxoSmithKline's (GSK) Ellipta® products for the period from August 2016 through December 2018. Outcome of post-trial applications from both sides awaited. GSK has the right to appeal
VR315 (US) progressing as planned, submission of the CRL response expected Q4 2019
