Vectura sees hefty rise in full-year 2013/14 revenues, as loss narrows

Shares of UK developer of inhaled therapies Vectura (LSE: VEC) gained 3.1% to 131.45 pence in early trading this morning, as the company reported a 20% rise in full fiscal year 2014 (ended March 31) revenue to £36.5 million ($61.4 million), boosted by higher royalty payments and an increase in licensing revenue.

The company posted positive earnings before interest, taxes, depreciation and amortization (EBITDA) of £5.2 million compared with a 2012/13: loss of £3.4 million. Loss before tax decreased by 54% to £4.8 million versus £10.4 million the previous year. Balance sheet strength was maintained with cash and cash equivalents of £81.7 million (£70.1 million at March 31, 2013), the company noted.

Chief executive Chris Blackwell commented: “The past year has been very significant for Vectura, driven by the tremendous progress made from the approvals and commercialisation of partnered assets and in the acquisition of Activaero [The Pharma Letter March 14]. Looking ahead, we anticipate the continued commercialization of Seebri Breezhaler, Ultibro Breezhaler and AirFluSal Forspiro, which will augment our growing royalty streams. We are determined to create further value in our Company and believe we are well-placed with our strategy to build a specialty pharmaceutical company focussed on airways-related diseases.”