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Vectura racks up huge loss following failure of severe asthma inhaler in late-stage study

Published: 09:16 26 Mar 2019 GMT

boy with inhaler
Vectura expects to sustain its performance in 2019

Vectura PLC (LON:VEC) swung to a massive loss last year following the failure of its VR475 severe asthma inhaler in a late-stage clinical trial.

Researchers had been hoping to show that the drug, which Vectura had been working on for several years, could help people suffering from the most severe asthma.

READ: Vectura to take £40mln hit from asthma drug failure

But results from the Phase III trial in November showed that VR745 proved little more effective than a placebo.

Vectura had valued the drug at around £40mln but that has written that down to zero now after opting to discontinue.

Legal dispute with GSK cost £7mln

The company has also set aside £7.1mln to cover costs associated with a patent dispute with GlaxoSmithKline PLC (LON:GSK).

Including other one-off charges, Vectura fell to an operating loss of £105.4mln in 2018, wider than the £96.2mln loss it racked up a year earlier. Adjusted underlying earnings (EBITDA) rose by 51.2% to £39.0mln.

Revenue climbed 8.4% to £160.5mln (2017: £148.0mln), aided by a 14% rise in sales of its flutiform asthma inhaler and a £6.6mln boost from a deal signed with Hikma to develop a generic version of GSK’s Ellipta inhaler.

‘Sustained performance in 2019’

“Focused execution of the group's strategy resulted in a strong financial and operational performance in 2018,” said chief executive James Ward-Lilley.

“Despite the disappointment of the VR475 Phase III study, we continue to make good progress with our nebulised programmes, including the development of three new specialist opportunities.”

He added: “We look forward to sustaining our operational performance and providing an update on a number of important catalysts in 2019 including VR315 resubmission, partnering of VR647, further progress on our new nebulised assets and Phase III study completion for QVM149.”

Shares were broadly flat at 71.4p in early trading on Tuesday.

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