Vectura climbs on positive read-across from Novartis, Singer upgrade

Shares in medical device group Vectura were given a boost by expectations of foreign currency gains and investors reading across results from Novartis, with which the London-listed company is partnered on a handful of products.

A third-quarter update from Novartis on Tuesday included strong growth in Ultibro sales to $95m, up 38% year on year.

Data from clinical trials comparing twice-daily Utibron, which uses Vectura's Neohaler device, with GSK’s Anoro is scheduled to arrive in around a month’s time.

If positive, this could lead to a US launch of Utibron in early 2017, broker N+1 Singer said, with Seebri, another device using the Neohaler, also expected to launch early next year.

Singer, which also upgraded its forecasts 10% due to the recent weakness of sterling, noted that Novartis had provided a reassuring, albeit brief, update on its US respiratory strategy.

Altogether, this "should drive some positive momentum for Vectura where their share price has been quiet", analyst Jamie Constable wrote in an email to clients.

Vectura shares, having hit a two month low late on Tuesday, rose 6% to 138.8p by 1430 BST on Wednesday.