Vectura buoyed as full-year earnings set to top expectations

Vectura Group made gains on Thursday after reporting that it expects full-year underlying earnings to exceed market expectations as the sales performance of its flutiform and Ultibro products drives revenue growth.

The London-listed inhaled drugs specialist said total in-market sales of flutiform were up 8.6% year-on-year for the 12-month period to September 2018 at constant exchange rates, while revenues from Ultibro grew by 12.2% across the same period.

James Ward-Lilley, chief executive of Vectura, said: "Vectura has made good progress in the year with positive top line performance, pipeline evolution aligned with our refocused investment strategy, and strong operational execution."

Meanwhile, the company said its research and development investment for the year is now expected to come in at the lower end of its £55-65m guidance range, with guidance for the next full year unchanged at £45-55m.

Vectura’s cash and cash equivalents were reported at approximately £108m at the year-end.

Russ Mould, investment director at AJ Bell, said: "Sometimes it’s not a case of doing bigger business but of doing better business. While 2018 revenue guidance was left unchanged in an update from pharmaceutical firm Vectura, earnings were flagged to be ‘materially ahead’ of expectations."

Mould added that the news could suggest that Vectura’s strategy of moving its focus from higher risk early stage product development to partnerships with major companies and sales from licensed products is bearing fruit, a year after it was first announced.

Vectura Group’s shares were up 14.15% at 80.40p at 1040 GMT.