Shares in Vectura rose after the Chippenham-based specialist drug developer announced it would receive multi-million pound cash payments as two of its projects reach development milestones.
The firm is to receive €5m (£3.6m) from the development of a treatment for serious lung disease by an unnamed partner firm. 
The VR876 programme uses one of Vectura’s smart nebuliser delivery systems to improve the patient acceptance of the product.
The important development milestone in Europe will be followed by further commercial milestones and tiered royalties on any net sales in the European Union and rest of the world in the event of successful launches. Financial terms of the agreement have not been disclosed.
Trevor Phillips, chief operating officer at Vectura, which specialises in the development of products for the treatment of airways-related diseases, said announcement demonstrated the value now being generated from its March 2014, €130m (£108m) acquisition of specialist German pharmaceutical company Activaero.
“Vectura continues to be viewed as a partner of choice by companies seeking to address the unmet medical needs of patients with airway diseases,” he said.
Meanwhile, the firm has also received $3m (£1.98m) as its VR315 generic, inhaled combination therapy for asthma/ chronic obstructive pulmonary disease (COPD) after reaching a development milestone.
VR315 is being developed by the US division of an unnamed leading international pharmaceutical company delivered using Vectura’s proprietary dry powder inhaler and formulation technology. Since the programme started in 2011, Vectura has announced development milestones totalling $9m plus $10m from an initial payment.
The firm is eligible to receive a further $23m on achievement of future pre-determined development milestones.
Vectura chief executive James Ward-Lilley said: “The announcement of this further development milestone continues to demonstrate the progress being made on our highly valuable VR315 US respiratory programme and is underpinned with our excellent ongoing relationship with our partner.”
