GSK GSK plc

By Philip Waller

LONDON--Inhaler developer Vectura Group PLC (VEC.LN) Thursday said its merger with SkyePharma last year has increased the company's revenue as it hit a royalty target on a deal with GlaxoSmithKline PLC (GSK.LN).

Vectura said it achieved the 9 million pounds ($11.2 million) cap on low single-digit percentage royalties from net sales of Breo/Relvar Ellipta, Anoro Ellipta and Incruse Ellipta a year earlier than planned.

The group will record GBP5.4 million of the capped amount-- from the legacy Skyepharma agreement with GSK--in its 2016 revenues, representing income since June 10, the effective date of its merger with Skyepharma.

It comes on top of royalties for a separate Vectura legacy agreement with GSK, which reached a GBP13 million calendar-year cap before GSK terminated the deal.

For the financial year to Dec. 31, the group will record GBP7.3 million of royalties under the latter legacy deal.

Chief Executive James Ward-Lilley said: "The merger with Skyepharma has added to the group's growing revenue."

-Write to Philip Waller at philip.waller@wsj.com

(END) Dow Jones Newswires

February 16, 2017 03:52 ET (08:52 GMT)

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