- Respiratory diseases focused Vectura said it expected to post full-year adjusted earnings and revenue ahead of its expectations following the approval of a generic Advair treatment in the fourth quarter.

'I am pleased to report that the business has performed well during 2020, trading ahead of board expectations following FDA approval in December 2020 of our generic Advair programme, partnered with Hikma,' chief executive Will Downie said.

'The business has also proven resilient in the face of wider challenges posed by the coronavirus outbreak.'

Downie said Vectura had continued to execute on its inhalation CDMO [contract development and manufacturing organization] strategy, signing 18 deals during 2020, with revenue from this new business being recognised in the second half of the year.

Looking ahead, Vectura said it expected CDMO revenue in 2021 to triple compared to 2020.

However, flutiform product supply revenues benefited from partner stock builds in both 2019 and 2020, which were not expected to recur in 2021.

Consequently, partner demand forecasts indicating Vectura product supply revenue in the range of £75 million-to-£80 million.

On the cost side, a phased reduction of activities at the company's Muttenz site in Switzerland would begin in 2021.

The initiative was expected to deliver a modest benefit to the operational cost base in 2021, with a £5 million-to-£7 million reduction in annual operating cost expected by the end of 2022.

'Reflecting the group's transition towards a development services model and restructuring of the group's operational footprint, the group expects to incur low-single digit £'millions of exceptional cash costs in 2021,' Vectura added.

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