Vectura and GlaxoSmithKline sign dry powder drug formulation deal

04 Dec 2002

Vectura also secures further funding to advance product pipeline

Vectura Limited (Vectura) today announced that it has signed an agreement with GlaxoSmithKline plc (GSK) to collaborate on evaluating Vectura's Aerocine and associated powder formulation technologies in dry powder inhaler devices for the treatment of inflammatory and constrictive diseases of the airways.

Vectura will earn option and development fees during the initial programme of work and pre-agreed licence fees, milestone payments and royalties if GSK exercises its option to licence Vectura's formulation technology for its respiratory product pipeline. The financial terms of the agreement are not being disclosed.

Vectura's Aerocine technology is part of the family of PowderHale powder formulation systems, which utilise specially selected components termed 'Force Control Agents' that modify the interactive forces between the active drug substance and the carrier particles, thus achieving optimal flow properties as well as superior de-aggregation and aerosolisation characteristics. These formulation systems have been successfully applied to a wide variety of therapeutic drugs and inhaler devices.

In another significant development for the company, Vectura successfully completed a further round of equity financing of £6.9 million. The Merlin Biosciences Fund LP together with ISIS Capital/ISIS Asset Management business units led the round, each investing £2 million. West Euro Beteiligungsgesellschaft mbH, a 100% subsidiary of West LB AG, contributed £1.5 million, Sitka Health Fund VCT and eTechnology VCT contributed £0.5 million each, with Northern Ventures, Vectura management, non-executive directors and the scientific founders providing the balance. Vectura has also entered into a £2 million loan facility with GATX European Technology Ventures, bringing the total additional cash resources available to the company to £8.9 million.

"We are delighted to be working with GSK, one of the world's leading developers of innovative respiratory medicines", said Peter Virley, CEO of Vectura. "Furthermore, the equity refinancing will enable us to progress five exciting pipeline products into the clinic over the next eighteen months. We have both the drug formulation and device technologies to become a leading supplier of enhanced-performance products."

Vectura employs over 100 people at its Chippenham site, and on the Cambridge Science Park. Its major shareholders are Friends Ivory and Sime funds, Merlin Biosciences funds, the University of Bath and its management.

For further information please contact:

Vectura Limited
Peter Virley
Tel: +44 (0)1249 667700
Fax: +44 (0)1249 667701
Email: enquiries@vectura.com

Financial Dynamics
David Yates / Lucy Briggs
Tel: + 44 (0) 207 269 7242