Vectura unveils 43 mln stg cash call to fund further drug trials
June 28, 2006

Vectura Group PLC unveiled plans to raise 43 mln stg through a share sale to institutional investors, to allow it to progress certain of its key drugs further through clinical trials and broaden its portfolio of experimental products.

The company said 53 mln shares will placed at 85 pence each, yesterday's closing mid-market price.

Small drug developers can seek increasingly lucrative out-licensing deals the further products progress through trials, because the risk of failure diminishes with each stage.

Vectura wants the funds so it can progress certain of its key products itself, before seeking co-development deals, and take others to the stage where they seek approval from regulators.

Separately, the company said a phase IIb trial of its inhaled treatment for Erectile Dysfunction, VR004, demonstrated a statistically improved erectile performance, with a rapid onset of action that was both durable and well tolerated.

Additionally, a collaborative product with Sosei Co, being developed by Novartis AG, an inhaled once daily treatment for chronic obstructive pulmonary disease, has successfully completed a Phase IIb multiple dose-ranging clinical trial.

Novartis are proceeding as planned with the development programme, Vectura said.

At 8.20 am the company's shares were trading 1.5 pence higher at 86.5, giving Vectura a market value of 98 mln stg.

Source: http://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleRef=9416&ArticleHeadline=
Vectura_unveils_43_mln_stg_cash_call_to_fund_further_drug_trials