Activaero acquired by Vectura

Chippenham, UK - 13 March 2014: Vectura Group plc (LSE: VEC; "Vectura" or the "Company") announces the acquisition of Activaero GmbH ("Activaero") for a total consideration of €130 million (£108 million) to be funded through a combination of existing cash and equity.

Activaero is a private German pharmaceutical company focused on the development of products for the treatment of respiratory diseases. Its proprietary smart nebuliser-based technology (FAVORITE) allows drug deposition into targeted areas of the lung and is currently utilised in seven clinical and several preclinical stage programmes.

The acquisition of Activaero fulfills a number of strategic priorities in a single transaction, creating a therapeutic area specialist for airways diseases. The combined entity will benefit from:

  • diversified income streams with long term value-creation for Vectura's shareholders
  • a balanced pipeline of late-stage and early-stage assets across a spectrum of indications
  • access to revenue generating, proprietary, smart nebuliser-based technology that enables targeting of inhaled drugs into pre-selected areas of the lung
  • the opportunity to develop a wide range of molecular entities, ranging from small molecules to biologics
  • a broader partnership base

In addition, Vectura will benefit from:

  • enhanced medium and long-term growth profile; accelerated revenue growth with EBITDA growth profile remaining broadly in-line over a five year period
  • double digit returns on investment
  • near-term synergies of approximately €1.5 million, resulting from reducing duplicate head office and administrative costs

Dr. Chris Blackwell, Chief Executive of Vectura:

"We are determined to build further value in our Company and this transaction represents an important step towards building a sustainable specialty pharma business. The acquisition is highly complementary to Vectura's core capabilities, in-line with our strategic priorities and, I believe, will enable us to build a therapeutic specialist in airways diseases. With this transaction, we create a much stronger entity with a balanced offering of products and technologies, both partnered and un-partnered. Our considerably deeper pipeline and new partnerships will provide us with the opportunity to drive organic growth. We see significant value in the combination of our respective respiratory expertise and believe that the combined company is well positioned to extract even more value from our broader technology base and potentially retain greater economics from pipeline assets."

Dr. Gerhard Scheuch, Founder and Chief Executive Officer of Activaero:

"Vectura is well positioned to develop Activaero's assets using its development expertise and building on its success in deriving value from its products. Our corporate partners and patients will greatly benefit from the new joint organisation. It will allow us to even better serve our clients by offering a broader spectrum of innovative therapeutic options and services going forward. I am pleased to be able to continue my involvement in this organisation."


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