Glaxo Group and GlaxoSmithKline Research & Development have signed a worldwide agreement to license some of Vectura’s dry powder drug formulation patents.

The patents relate to two compounds currently in being developed by GlaxoSmithKline to treat respiratory illnesses such as asthma and chronic obstructive pulmonary disease.

Under the terms of the agreement, Vectura will receive £10m in September 2010 as an upfront payment and a further £10m when the products are launched.

In addition, Vectura will earn royalties capped at certain sales levels of these products, totalling a maximum of £13m.