Citi upbeat on Vectura; S&P's upgrades Merck KGaA

In a report issued last week on UK drug delivery specialties Vectura (LSE: VEC), analysts at Citi Research Investment say they “remain bullish on the outlook for the global COPD [chronic obstructive pulmonary disease] market.”

They say Vectura looks well-placed to capture substantial share of a market they forecast to grow at 7% CAGR to $16 billion by around 2020, up from its current value of $9.8 billion, and have increased their share price target to $1.42 as the respiratory portfolio launches.

With its first product, Seebri Breezhaler (glycopyrronium bromide), currently being rolled out in the European Union by partner Novartis and strong clinical data de-risking the lucrative QVA149 combo product ex-US, they have raised their in-market 2020E sales forecasts for Vectura’s branded portfolio to $2 billion from $1.5 billion and reiterate their Buy rating.”