Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Vectura Could be a Breath of Fresh Air in your Biotech Portfolio.

By Malcolm Stacey

2 February 2016 01:11

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Hello Share Shiners. All right, this is another article on a promising bio science outfit. Yes, my support for companies which push through the frontiers of medicine is undiminished in 2016.

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Comments

Alquemie

2 February 2016, 04:39

Malcolm, I think you need to look at the bigger picture before getting all unnecessary over VEC.

GSK’s Breo/Revlar is based on VEC intellectual property (with VEC receiving royalties). GSK were counting on Breo to replace their major earner, Advair, which is being hammered by generic competition. Breo had a slow start in the market and failed to show additional benefit in a large COPD study last year. Two other GSK meds on which VEC collects royalties, Anoro and Incruse have had slow US sales although sales could pick up on since their inclusion on the Medicare Part D formulary and promotion in the form of major DTC campaigns.

VEC’s other key licensee/strategic partner, Novartis appears to be doing well outside of the US with two Breezhaler products on which VEC collects royalties, However, if approved in the US, they face the same issues that GSK have experienced with respect to pricing and formularly inclusion (and competition with one of the GSK products) and I can see only limited scope for market expansion.

I don’t see any major short term value in VEC’s own pipeline (only heavy burn). Potential punters should be taking a hard look at anticipated royalty income before taking the leap.