Vectura achieves royalty cap from GSK’s respiratory products

Vectura Group has reached a royalty cap on net sales of £9 million from selling GSK’s respiratory Ellipta products in 2016. 

According to the deal, Vectura Group as merged with Skypharma, who actually has a deal with GSK, gets a low single-digit percentage royalty on net sales of GSK’s Ellipta products. Those products are Breo/Relvar, Anoro, and Incruse. Vectura said in its Thursday announcement it will record £5.4 million of the capped amount of £9 million per calendar year in its 2016 revenues, which the company accounts as income from June 2016, the date of the Skypharma merger.

Furthermore, Vectura will get another £7.3 million, from the royalties Vectura earned without the merger, in an agreement with GSK which was subject to a £13 million calendar year cap.