Vectura (VEC) has sealed an asthma drug development and license agreement worth up to €68m (£58m) with Mundipharma and an unnamed US company.
Investor sentiment for the deal in the $40bn respiratory market is muted as shares in the firm nudge 1% higher to 136p.
Vectura completed feasibility work on the treatment, named VR2076, under an agreement last year. Its partners, Mundipharma and the US firm, exercised their option to develop and commercialise the treatment initially in asthma which triggers an initial €1.5m payment to Vectura.
UP TO €68 MILLION
Vectura will receive milestone payments of up to €46.5m, which are linked to the development, regulatory and launch process of the programme, as well as royalties on future net sales of the product.
In addition, the deal includes the option for further development of the triple combination treatment for chronic obstructive pulmonary disease worth €20m plus royalties.
TREATMENT TIMELINE
Vectura has reported the first regulatory filings of VR2076 are planned in the EU for late 2022/early 2023.
Vectura's work on the VR2076 development programme includes the combination of three molecules: inhaled corticosteroids (ICS), long-acting beta agonist (LABA) and long-acting muscarinic antagonist (LAMA).
ICS reduces inflammation in the lungs, while LABA and LAMA helps asthma sufferers by opening up the airways.
