Vectura Group plc , the inhalation product development company, announces that Sandoz, the generics division of Novartis, is the exclusive licensee in certain territories for Vectura's combination asthma/COPD products, VR315 and VR632.
Combination therapy for asthma and COPD is the biggest and fastest growing sector of the respiratory market, with annual sales currently exceeding US$9 billion, a Vectura press release said
VR315 is being jointly developed as a generic product delivered with Vectura's GyroHaler dry powder inhaler (DPI) delivery device. Vectura licensed the European rights for VR315 to Sandoz in March 2006 and the US rights were licensed to them in December 2006. In December 2007, Sandoz exercised an option to license VR632 in Europe. VR632 is also being developed as a generic combination product using the GyroHaler DPI.
Vectura is due to receive up to €38 million in milestones and development funding prior to the launch of VR315 and VR632 in Europe, and will earn royalties on all product sales as well as a margin on the commercial manufacture and supply of GyroHaler. Vectura is also due to receive a share of profits from all Sandoz VR315 US sales, as well as up to $63 million upon achievement of pre-determined development and commercial milestones. Costs for the US development of VR315 are being shared between Vectura and Sandoz on a defined basis.
Dr Chris Blackwell, chief executive of Vectura, commented: "These respiratory products are major opportunities for both Sandoz and Vectura. The investments made by both companies are now visible, as is the potential to derive significant value from them."
Vectura Group plc is a product development company focused on the development of a range of inhaled therapies principally for the treatment of respiratory diseases. Vectura develops products to treat respiratory diseases such as asthma, chronic obstructive pulmonary disease (COPD) and cystic fibrosis, a market which is forecast to double over the next ten years from $23 billion in 2007 to $46 billion by 2017.