UPDATE: Vectura Rises As Novartis Sets Drug Launch Plans
21 October 2010 - 9:06PM
Dow Jones News
Swiss drug giant Novartis AG (NOVN.VX) Thursday said drugs using
technology licensed from Vectura Group PLC (VEC.LN) are scheduled
for launch within the next few years, sending shares in the U.K.
respiratory drug developer higher.
Novartis said it expects NVA237 will launch in 2012 and expects
QVA149 to go on sale in 2013, assuming they are approved. Both
products have been developed for the treatment of chronic
obstructive pulmonary disease, a serious lung condition known as
COPD or smoker's lung, and are currently in late-stage clinical
trials.
Vectura and Sosei Group Corp. (4565.TO) licensed NVA237 to
Novartis in 2005 in a deal worth up to $375 million in payments for
various clinical and regulatory milestones.
Both firms stand to receive royalties on eventual sales of
NVA237 and on sales of QVA149, which combines NVA237 with a
Novartis compound called indacaterol.
Keith Redpath, an analyst at FinnCap, said he estimates Vectura
will receive about $15 million in payments from Novartis next year
if progress with NVA237 is as expected. He rates the stock at
"buy".
At 0912 GMT, shares in Vectura were up 4 pence, or 7.3%, at 59
pence, outperforming a 0.01% higher Dow Jones U.K. Smaller
Companies index.
Vectura added it received a EUR600,000 milestone payment from
Novartis AG's (NOVN.VX) generic drug unit Sandoz relating to
development of VR632. The companies haven't disclosed what VR632 is
but analysts believe it to be a generic version of Symbicort, an
asthma and COPD treatment sold by AstraZeneca PLC (AZN.LN).
Another generic product, VR315, is awaiting approval in Europe,
giving Vectura four products with a clear path to market, according
to Chief Executive Chris Blackwell.
Analysts believe VR315 to be a generic version of
GlaxoSmithKline PLC's (GSK.LN) asthma blockbuster Advair.
-By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272;
jason.douglas@dowjones.com
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