Vectura signs additional deal with unnamed US pharma company

UK developer of inhaled therapies Vectura Group (LSE: VEC) has signed a US collaboration, development and license agreement for VR506, its clinical stage asthma monotherapy delivered using Vectura’s proprietary technology.

The agreement for VR506 is with Vectura’s existing, undisclosed, US partner for VR315 (a combination therapy for asthma/COPD). In August 2011, Vectura signed a license agreement for the development, manufacturing and commercialization of VR315 in the USA with the US division of a leading (unnamed) international pharmaceutical company. To date, Vectura has announced development milestones under this agreement totaling $6 million, most recently a milestone of $1.5 million last week.

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 VR506, for which it will receive an initial payment of $4 million and up to $8 million upon achievement of pre-determined development milestones. Further development fees may be payable to Vectura if the program progresses beyond a pre-defined milestone. In addition, Vectura will receive a royalty from all VR506 US sales.