Verona Pharma’s Strong Market Performance and Strategic Advancements Justify Buy Rating and Increased Price Target

Ram Selvaraju, an analyst from H.C. Wainwright, reiterated the Buy rating on Verona Pharma (VRNA – Research Report). The associated price target was raised to $85.00.

Ram Selvaraju has given his Buy rating due to a combination of factors that highlight Verona Pharma’s strong market performance and strategic advancements. The company’s sole marketed product, Ohtuvayre, has significantly exceeded sales expectations, with first-quarter 2025 revenues reaching $76.3 million, well above the forecasted $49.7 million. This impressive performance is driven by a high number of new patient starts and refills, as well as a substantial increase in the number of prescribers.
Additionally, Verona Pharma has strengthened its financial position by amending its strategic financing agreements, which have enhanced financial flexibility and reduced capital costs. The recent approval of Ohtuvayre in Macau and the effective product-specific J-code further bolster the company’s market potential. With a robust sales trajectory and potential peak sales in the U.S. estimated at $4 billion annually, Selvaraju believes Verona Pharma is well-positioned for long-term growth, justifying the Buy rating and the increased price target of $85 per ADS.

According to TipRanks, Selvaraju is a 2-star analyst with an average return of 0.0% and a 34.61% success rate. Selvaraju covers the Healthcare sector, focusing on stocks such as Vanda, Axsome Therapeutics, and Niagen Bioscience.

In another report released on April 28, TD Cowen also initiated coverage with a Buy rating on the stock with a $100.00 price target.