US deal for Vectura; takeover bid for AMAG

There was good news this morning from Vectura Group (LSE: VEC), a UK-based inhalation product development company, which says it has signed a US collaboration, development and license agreement with a US division of an undisclosed leading international pharmaceutical company for Vectura's VR315 product. VR315 is a combination therapy for asthma/chronic obstructive pulmonary disease (COPD) delivered using Vectura’s proprietary technology.

Under the terms of this agreement, Vectura's partner will be responsible for the commercialization and manufacture of the product together with clinical development. Vectura will provide support for the US development of VR315, for which it will receive an initial payment of $10 million and up to $35 million on the achievement of pre-determined development milestones. In addition, Vectura will receive a royalty from all VR315 US sales.

Vectura’s shares, which have already gained significantly after reporting positive trial results with another COPD drug candidate, NVA237 under development with Novartis (The Pharma Letter July 1), rose a further 3% to 103 pence in a downturned London market this morning.