UPDATE 2-Vectura eyes Boehringer generic, H1 beats forecast

* Ends device deal with Boehringer Ingelheim

* May now make generic version of Boehringer drug

* Also clears the way for Novartis takeover

* H1 revenue up 71 pct to 22.8 million pounds, beating view

* Shares up 2.5 percent (Recasts, adds comments from interview, analyst reaction)

By Ben Deighton

LONDON, Nov 27 (Reuters) - British inhaled drug specialist Vectura (VEC.L) may start making a generic version of Boehringer Ingelheim's Spiriva after ending its deal with the company, it said after posting first-half results which beat expectations.

"For example we could now work on a generic version of tiotropium (the chemical name for Spiriva)," chief executive Chris Blackwell told Reuters, adding he was not saying the company was definitely planning to make the product.

Spiriva, marketed with U.S.-based Pfizer (PFE.N), treats chronic obstructive pulmonary disease, commonly known as smoker's lung.

Ending the agreement with Boehringer Ingelheim also clears the way for a takeover bid from Vectura's main drug development partner, Swiss giant Novartis (NOVN.VX), analysts said.

"Adding a Spiriva generic would solidify Vectura's position as a respiratory generics powerhouse, and an obvious take-out candidate for Novartis," said Noble analyst Stefan Hamill in a note to clients.

Earlier Vectura said first-half revenue beat expectations, driven by cash earned from licensing out drugs, but said it did not expect to get any more payouts from Big Pharma this year.

The company, which spends most of its money on drug development, said it made a loss per share of 1.0 pence, on revenue of 22.8 million pounds ($37.35 million), which exceeded estimates by specialist broker Piper Jaffray of 17.2 million pounds.

Vectura has licensed out a number of developmental treatments to Novartis, including two lung drugs which are widely seen as generic versions of AstraZeneca's (AZN.L) blockbuster Symbicort and GlaxoSmithKline's (GSK.L) blockbuster Advair.

However it suffered a setback in October when it emerged that it must wait for an expected $7.5 million payment until its next financial year because Novartis has delayed studies on QVA149, a new two-in-one lung drug. [ID:nLM447186]

Shares in the company were up by 2.5 percent by 0950 GMT, partially reversing an 8.5 percent drop on Thursday. (Editing by James Davey and Toby Chopra) ($1=.6105 Pound) ((ben.deighton@reuters.com; +44 207 542 7009; ben.deighton.reuters.com@reuters.net))