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Vectura Group plc, specialist inhalation CDMO, reported total revenue up 6.9% to £190.6m (2019: £178.3m) in preliminary results.
Product supply revenue decreased by 4.4% to £109.9m; flutiform® product supply revenues marginally ahead of guidance at £95.8m.
Development services revenues increased by 4.4% to £11.9m (2019: £11.4m), reflecting contribution from new CDMO contracts in H2 2020.
Royalty and other marketed revenues increased by 32.6% to £68.8m (2019: £51.9m), driven by milestones and Q4 GSK Ellipta® royalties of £6.5m following successful US litigation outcome.
Gross profit increased by 6.4% to £101.4m (2019: £95.3m).
Adjusted EBITDA 2 increased by 41.7% to £61.5m (2019: £43.4m), reflecting an increase in Royalty and other marketed revenues and a material decrease in R&D investment.
Operating profit of £132.8m (2019: £27.0m loss) driven by the recognition of £121.1m exceptional income for damages and interest associated with the enforcement of a patent covering three US GSK Ellipta® products and improved adjusted EBITDA performance.
Strong liquidity maintained with closing cash and cash equivalents of £78.6m (2019: £74.1m), reflecting free cash flow generation of £24.1m and a share buyback of approximately £16.4m during 2020.
Operational highlights included a new business development team now established with presence in East and West Coast US, Europe and UK.
Vectura chief executive Will Downie said:The business has performed well during 2020, delivering financial performance ahead of expectations. We are pleased with the progress we have made against our inhalation CDMO strategy, signing 18 deals during 2020, with £3.0m revenue recognised in the second half of the year.
After the positive outcome of the appeal in the GSK US patent litigation, initial proceeds were received by Vectura in January 2021. Following a review of the Group's allocation priorities, we have today announced that the Board has approved, in principle, a special dividend of approximately £115m which is intended to be paid to shareholders during 2021.
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