In a move that would help boost revenues at drug delivery group Vectura, the company’s licensing partner Novartis has decided to continue clinical trials on one of the former’s drugs NVA237, being tested to treat chronic obstructive pulmonary disease.

Notably, Vectura specialises in formulating and optimising drugs aimed at treating respiratory diseases. Novartis has announced to begin phase III studies on Vectura’s NVA237, which is the final stage before marketing approval can be sought.

The decision by Novartis, which is now expecting to file for regulatory approval of the drug in 2011, help Vectura gain a milestone payment of $7.5m (£4.5m), it is learnt.

Besides, the drug delivery group continues to receive royalties on eight products that are already on the market and which use Vectura technology. Among them are asthma inhalers, blood-clotting products for haemophiliacs, and a treatment that prevents human tissue sticking together after surgery.

Believed to be a generic version of Advair, Vectura would be developing the drug on its own in the US. However, Vectura develops the drug in partnership with Sandoz in Europe.

“It was handed back to us primarily because the regulatory environment in the US looks as though it’s increasingly going to require so-called 505(b)2 applications [a more onerous approvals process] for products of this sort”, said Chris Blackwell, Chief Executive of Vectura.