Vectura confirms R&D investment priorities, announces a proposed £50 million capital return and a pre-close trading update
Chippenham, UK – 17 July 2019: Vectura Group plc (VEC.L) ("Vectura" or "the Group") today confirms its R&D investment priorities, announces a proposed £50 million capital return and provides an unaudited pre-close trading update. “Given the Group’s focus is now primarily on organic growth, with lower risk R&D spend supported by partners, it is our intention to return £50 million to shareholders this year, with the Board continuing to review our capital allocation strategy on a regular basis. Following the successful build out of its generics portfolio, Vectura will continue to focus on securing new partner contracts for the development of inhaled therapies, including novel molecules. For these contracts the Group will move towards offering development services where a smaller proportion of the overall contract value is delivered through contingent milestones. In light of the Group’s reducing R&D risk profile, future cash generation expectations and strong cash balance, the Board has approved, in principle, a capital return of approximately £50 million, commencing in 2019.