Verona Pharma’s Ohtuvayre Positioned for Market Dominance Amid Reduced Competition

H.C. Wainwright analyst Ram Selvaraju reiterated a Buy rating on Verona Pharma (VRNA – Research Report) today and set a price target of $90.00.

Ram Selvaraju has given his Buy rating due to a combination of factors, primarily focusing on the competitive landscape and market potential of Verona Pharma’s product, Ohtuvayre. The recent mixed results from Regeneron Pharmaceuticals and Sanofi’s trials for their COPD treatment, itepekimab, suggest potential delays in its market entry. This delay enhances the market position of Ohtuvayre, which has already been approved and is being marketed in the U.S. Selvaraju believes that the reduced competition will allow Ohtuvayre to capture a larger market share, leading to significant sales growth.
Additionally, Selvaraju anticipates that Ohtuvayre’s sales could reach peak annual figures of approximately $4 billion in the U.S. by the mid-2030s. The drug’s broad applicability across various COPD patient groups, including those on multiple therapies, further supports its market potential. The analyst has raised the 12-month price target for Verona Pharma’s stock to $90, reflecting the positive adjustments in sales forecasts and the strengthened competitive position of Ohtuvayre.

In another report released on May 30, Jefferies also reiterated a Buy rating on the stock with a $95.00 price target.