One to watch

VECTURA Group is involved in developing inhaled therapies for the treatment of respiratory diseases. Its products target illnesses such as asthma and chronic obstructive pulmonary disease, while Vectura also develops products for other lung pathologies and non-respiratory diseases.

Vectura recently agreed with then-partner Novartis to take over the US development of VR315, an asthma drug regarded as a generic version of GlaxoSmithKline's blockbuster Advair which, along with AstraZeneca's Symbicort, go off-patent within two years. As a result, Vectura will no longer have to share profits from the drug with Novartis, but investors were unimpressed, concerned that, without the muscle of Novartis' marketing authority, the company might struggle in the US.

However, if Vectura can make any inroads into the US market considerable benefits will follow. The negative reaction to the recent news seems to fear the worst and ignore what could be appreciable potential. One for the brave.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Chloride

220.5p -2.3p

Broker says HOLD

STICK with Chloride is the investment advice from analysts at KBC Peel Hunt. It follows news that trading in the final quarter was "satisfactory". The broker said: "We believe the shares are fully valued in the absence of an imminent bid. We maintain our hold recommendation."

RBS

44.69p -0.26p

Broker says SELL

CONTRARY to others, Seymour Pierce is advising investors to sell shares in Royal Bank of Scotland. The broker said yesterday its sell case was based on "expectation that revenue in the core part of the business is likely to disappoint". It comes as a disposal programme has had five bids for the former Williams & Glyn's branch network.