Anglo German inhaler deal worth over £10m up front
Medical device specialist, Vectura has tied up a multi-million pound collaboration with German pharma Boehringer Ingelheim.
The deal sees the partners working on the development of a dry powder inhaler – branded Boehringer Ingelheim – to deliver a range of the German company's respiratory products.
Vectura, which has its R&D headquarters at Cambridge Science Park, will receive an initial payment of £3.45m and an equity investment of £6.9m. Boehringer Ingelheim will buy 1.4m shares at £1.40 each, giving it a holding in Vectura of 3.8 per cent.
The deal could be worth significantly more to Vectura if it meets expectations. Vectura will get a further payment and equity investment if pre-clinical targets are met and then further milestone payments as the project progresses through clinical trials. In addition Vectura will receive royalties on any global sales.
Under the non-exclusive agreement, Vectura will work with Boehringer on the development of the inhaler until the end of 2007, after which the German firm will be responsible for any further development, manufacturing, clinical trial use and commercialisation.
AIM-listed Vectura’s shares were up five per cent or 6p to 123p following the announcement. The company has grabbed national attention for its inhaled verion of Viagra, which the company says benefits from being much faster acting than the market-leader.
The Boehringer Ingelheim group is one of the world's 20 leading pharmaceutical companies, employing 37,500 around the world.