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Vectura improves profit guidance

The respiratory drug developer says cash profits will exceed expectations this year
Vectura improves profit guidance

We kept the faith when respiratory specialist Vectura (VEC) announced a Phase III drug failure at the end of November, so the 10 per cent jump in the share price on the back of raised profit guidance feels like a just reward.

IC TIP: Buy at 80p

A pre-close update revealed a "strong operational performance" – one that will drive annual cash profits "materially ahead of market expectations". While group revenues are expected to be reported in line with consensus estimates, adjusted cash profits will exceed current projections thanks to the sales mix, "productivity initiatives" and good margin improvement. Research and development (R&D) costs are also expected to land at the bottom of the £55m to £65m guided range.