Vectura (VEC) is changing to a ‘relatively lower risk’ strategy as it plans to extend the partnered development of high-potential generic drugs for the US.
The FTSE 250 pharma firm develops formulations and technology for dry powder inhalers.
In a jam-packed update, Vectura says it is planning to be more selective when choosing future programmes. It also will not invest in higher risk early stage novel molecule development.
Instead, Vectura plans to partner its early stage novel molecule programmes VR942 and VR588, as well as its in-house assets VR475 and VR647.
Investec analyst Andrew Whitney says the partnering of VR647 is ‘notable’ as its product characteristics are most suitable to self-commercialisation.
Aside from its strategy update, Vectura says R&D costs will decline by approximately £10m to between £55m and £65m this year.
If VR647 is partnered before its Phase III trial starts in 2019, there is the potential for further R&D cost cuts of up to £10m from 2019 onwards.
NO UPDATE ON VR315 DISAPPOINTS
However, the news has not sparked confidence in investors as Vectura did not provide any updates on delayed generic asthma medicine VR315.
While the treatment will hopefully be launched by Hikma (HIK), the technology is based on Vectura’s dry powder inhaler technology.
The market is also disappointed that sales could be hit by around £5m if current exchange rates continue throughout the year.
Shares in Vectura are down 3.3% at 115.8p.
