Vectura's six-month loss up on R&D investment

A L7.9 million ($16.3 million) hike in R&D investment, related to the development of respiratory medications, increased the half-year shortfall at UK-based drug firm Vectura. For the six months ended September 30, 2007, the company posted a net loss of L9.6 million, up from the L1.9 million deficit it recorded in the year-earlier period.

Vectura, however, remained upbeat, citing the 102% rise to L12.3 million in revenue for the period, generated through licensing activities, development fees, royalties and device sales, as a validation of its increased R&D expenditure. Chris Blackwell, the company's chief executive, highlighted the recently-announced 10.0 million euro ($14.8 million) milestone from Boehringer Ingelheim (see page 22), as a specific example.

Product licensing revenues in the period were L2.2 million, including L1.4 million generated by the asthma treatment VR315. In addition, ongoing development of VR315, US and European rights to which were out-licensed last year, earned the firm L4.1 million. Sales royalties in the period amounted to L4.5 million, and were primarily related to products gained during its L128.8 million acquisition of Innovata last year(Marketletter November 27, 2006).