Vectura signs up Sandoz for asthma drug in RoW; good results for ALK Abello allergy immunotherapy

There was another boost for UK inhalation product developer Vectura (LSE: VEC), which announced this morning that it has entered into an exclusive license agreement with Sandoz, the generics division of Swiss drug major Novartis (NOVN: VX), for the development and marketing of VR315, a combination therapy for asthma/chronic obstructive pulmonary disease (COPD), in the rest of world (RoW) territory.

The RoW territory excludes the USA and those countries included in the existing VR315 European license with Sandoz, which returned US rights to the drug to Vectura in 2010. The UK company earlier this week said it has entered into a deal for US marketing of VR315 that would earn it as much as $45 million (The Pharma Letter August 3), news which sent Vectura’s share higher. Today’s development, however, failed to spur a further rise, but this has to be viewed against a background of tumbling stock markets worldwide.

Under the terms of the VR315 RoW agreement, Vectura will receive a royalty on net sales and a margin on the commercial manufacture and supply of the dry powder inhaler device used to deliver VR315 for RoW. Vectura is also eligible for milestones and advance pre-launch royalties worth up to 8 million euros ($11.5 million), 2.5 million euros of which are expected to be received by September30 this year.