Companies: VEC   

Inhaled medicine developer Vectura says it is progressing towards cash generation after annual losses up from £8.5 million to £21.3 million.

The Wiltshire-based company, which integrated its profitable respiratory acquisition Innovata and moved from AIM to the Full List last year, increased turnover by 80 per cent to £25.2 million in the 12 months to March. But a 75 per cent increase to £29.6 million in research and development spending and a 430 per cent leap to £10.2 million in the amortisation charge helped to swell pre-tax losses.

However, Vectura achieved a net cash inflow of £3.6 million and ended the financial year with nearly £79 million cash. The company made progress in collaboration with German pharmaceutical group Boehringer Ingelhaim in developing a new dry powder inhaler, completed Phase II studies for treatments of Parkinson’s disease and erectile dysfunction and completed an early proof of concept study for its VR147 migraine treatment.

Chief executive Chris Blackwell speaks of ‘progress towards our goal of becoming cash generative on a sustainable basis’. Vectura shares, which fell 127.5p to 34.75p between 2006 and March this year, have now reached 56.25p, up by 0.25p this morning, which values the company at £180 million.

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Vectura Group	LSE	£146.06m	45.50p	0.25p
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