A major focus on cost cutting, including moving work to its Chippenham headquarters, helped drug firm Vectura reduce its operating loss and increase revenues.
Financial results for the year to March 31 show the firm, which specialises in inhaled pharmaceuticals, grew sales by 7% to £42.9m and reduced its operating loss by £2m to £13.3m.
It closed its base in Nottingham during the period, relocating the work to Chippenham, and also restructured its research and development activities – moves which contributed to an annual cost saving of nearly £6m. Cash generated during the year climbed by £10.3m to £74.4m while Vectura's new product pipeline was boosted by positive clinical data.
Programmes in late-stage development include novel, once-daily branded medicines as well as in the increasingly lucrative generic/branded generic respiratory market.
In April Swiss pharmaceutical giant Novartis announced positive phase III results for Vectura's NVA237 (gylcopyronnium bromide) product, showing significantly improved lung function while demonstrating a good safety profile in patients with moderate-to-severe chronic obstructive pulmonary disease (COPD). Novartis re-affirmed it expects to launch the product next year.
Vectura described this as "a significant value-driving event . . . as it will yield both milestones on approval and royalties on future sales".
Chief executive Dr Chris Blackwell told shareholders: "Continuing the drive to increase revenues and reduce losses, Vectura has delivered another set of robust results.
"Over the course of the last 12 months, we and our partners have reported important clinical data, including the recent positive NVA237 Phase III data, underlining our confidence in our broad late-stage pipeline. With a reduced risk profile, strong balance sheet and multiple key catalysts expected in the short-term, Vectura continues to be innovative while moving closer to becoming a self-sustaining cash-generative company."
As well as Novartis, Vectura has development collaborations and licence agreements with several other pharmaceutical companies, including Sandoz (the generics arm of Novartis), Baxter and GlaxoSmithKline (GSK).
