An innovative asthma treatment developed by Chippenham-based specialist pharmaceutical firm Vectura is to go on sale in the US in deal that could earn it more than $1m.
Under the licensing agreement announced today, the VR730 product – which uses Vectura’s groundbreaking dry powder inhalation technology – is to be manufactured and commercialised in the US by UK pharmaceutical firm Hikma. 
While Vectura will complete the formulation development of VR730, the costs will largely be funded by Hikma.
Under the terms of the deal, Vectura will receive an initial payment of $375,000 (£300,000) and potentially $1.125m if the treatment reaches certain milestones.
Vectura said it was also eligible for a share of future returns of the product in line with its existing generic agreements, subject to Hikma being reimbursed for some of the costs of its clinical trial.
Vectura specialises in products that treat inhaled airways conditions such as asthma and chronic obstructive pulmonary diseases (COPDs) such as chronic bronchitis and emphysema. It was part formed from a spin-out company from the University of Bath.
Earlier this year Vectura earned $2m when its VR315 product, a different COPD treatment, completed a US clinical trial – the first payment of a potential $21m it could earn on future milestones in the treatment’s development.
Vectura is also working with Hikma on another asthma treatment, VR506.
In March Vectura merged with London-based Skyepharma to create a £1bn company which will generate sales of more than £150m a year.
Both firms specialise in treatment that use inhalers and nebulisers for people with asthma and other airways-related illnesses.
Vectura CEO James Ward-Lilley CEO said today: “Extending collaborations with our existing partners is a key part of our strategy and this agreement reflects the excellent strategic relationship we have with Hikma.
“This latest agreement further validates Vectura’s technology and value potential in the generics area which was strengthened by the merger with Skyepharma.
“As well as the development of VR730 with Hikma, the group is actively pursuing additional generic opportunities with significant potential.
“As announced in our trading update in September, we are initiating development of three to five new generic inhalation assets that we expect to progress further with partners adding to our exciting pipeline of partnered novel and wholly-owned specialist assets.”
