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Verona Pharma Plc (VRNA)
NASDAQ:VRNA
Top Page
Verona Pharma
(NASDAQ:VRNA)
58Neutral
Positive Factors
Market Adoption
Filled Ohtuvayre prescriptions increased significantly each month in late 2024, indicating strong market uptake and potential for robust long-term growth.
Revenue
Ohtuvayre's net revenue during 4Q24 was approximately three times higher than the initial estimate.
Negative Factors
Pricing Pressure
A 25% cut in pricing is modeled in 2033 due to the Inflation Reduction Act, and a 40% price cut in 2036 due to patent expiration.
Verona Pharma (VRNA) vs. S&P 500 (SPY)
Market Cap
$5.31B
Dividend YieldN/A
Average Volume (3M)1.48M
Price to Earnings (P/E)―
Beta (1Y)1.81
Revenue GrowthN/A
EPS Growth-213.94%
CountryUS
Employees79
SectorHealthcare
Sector Strength78
IndustryBiotechnology
Share Statistics
EPS (TTM)-2.16
Shares Outstanding84,978,880
10 Day Avg. Volume1,479,216
30 Day Avg. Volume1,480,507
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)123.31
Price to Cash Flow (P/CF)-45.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$80.29Price Target Upside18.77% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
Verona Pharma Business Overview & Revenue Model
Company DescriptionVerona Pharma Plc operates as a clinical-stage biopharmaceutical company, which engages in the development and commercialization of therapeutics for the treatment of respiratory diseases. Its lead product candidate, ensifentrine, has the potential to be the first therapy for the treatment of respiratory diseases that combines bronchodilator and anti-inflammatory activities in one compound. The company was founded by Michael J. A. Walker and Clive P. Page on February 24, 2005 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyVerona Pharma makes money through the development and potential commercialization of its proprietary drug candidates, primarily focusing on ensifentrine. The company's revenue model is centered around advancing its drug candidates through clinical trials, securing regulatory approvals, and ultimately marketing the approved therapies to healthcare providers and patients. Revenue streams may include sales of approved drugs, milestone payments from strategic partnerships, and potential royalties on licensed products. Additionally, Verona Pharma may engage in collaborations with larger pharmaceutical companies to leverage their resources for co-development and commercialization, which can provide upfront payments and funding support for clinical trials.
Verona Pharma Financial Statement Overview
Summary
Verona Pharma demonstrates strong revenue growth but faces profitability challenges with persistent losses impacting all financial statements. While the balance sheet shows a solid equity base, cash flow concerns and reliance on financing highlight potential risks. The company needs to focus on improving operational efficiency and reducing cash burn to sustain its financial health.Income Statement
Verona Pharma has shown a substantial revenue increase in 2024 compared to previous years, but the company continues to operate at a net loss, with negative net income and EBIT margins. The gross profit margin is positive, but high operating losses are a concern.40
Negative
Balance Sheet
The balance sheet reflects a relatively strong equity position with a low debt-to-equity ratio. However, ongoing losses and high liabilities relative to assets suggest financial pressure. Equity ratio remains healthy, indicating some stability.55
Neutral
Cash Flow
Cash flow from operations is negative, indicating ongoing cash burn. Free cash flow is negative, though financing activities have provided some liquidity. The cash position is strong, but reliance on external financing could be a risk.45
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 42.28M | 0.00 | 458.00K | 40.00M | 0.00 |
| Gross Profit | ||||
| 39.70M | -679.62K | 112.00K | 40.00M | -627.85K |
| EBIT | ||||
| -154.63M | -67.83M | -66.12M | -73.31M | -74.28M |
| EBITDA | ||||
| -138.53M | -52.47M | -67.29M | -42.19M | -47.81M |
| Net Income Common Stockholders | ||||
| -173.42M | -54.37M | -68.70M | -55.57M | -65.15M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 399.76M | 271.77M | 227.83M | 148.38M | 187.99M |
| Total Assets | ||||
| 474.24M | 308.12M | 259.47M | 186.59M | 204.21M |
| Total Debt | ||||
| 2.36M | 51.33M | 10.65M | 5.81M | 5.95M |
| Net Debt | ||||
| -397.40M | -220.44M | -217.18M | -142.57M | -182.04M |
| Total Liabilities | ||||
| 269.68M | 58.84M | 29.00M | 38.58M | 19.35M |
| Stockholders Equity | ||||
| 204.56M | 249.28M | 230.47M | 148.00M | 184.85M |
| Cash Flow | Free Cash Flow | |||
| -122.20M | -50.22M | -59.89M | -33.27M | -45.16M |
| Operating Cash Flow | ||||
| -122.20M | -50.22M | -59.86M | -33.25M | -45.08M |
| Investing Cash Flow | ||||
| -580.00K | 0.00 | -29.00K | -12.00K | 9.71M |
| Financing Cash Flow | ||||
| 250.78M | 92.87M | 140.82M | -6.12M | 192.34M |
Verona Pharma Technical Analysis
Positive
67.60
Price Trends
57.69
Positive
47.99
Positive
35.32
Positive
Market Momentum
2.08
Positive
59.49
Neutral
40.21
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRNA, the sentiment is Positive. The current price of 67.6 is above the 20-day moving average (MA) of 65.01, above the 50-day MA of 57.69, and above the 200-day MA of 35.32, indicating a bullish trend. The MACD of 2.08 indicates Positive momentum. The RSI at 59.49 is Neutral, neither overbought nor oversold. The STOCH value of 40.21 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VRNA.
Verona Pharma Risk Analysis
Verona Pharma disclosed 73 risk factors in its most recent earnings report. Verona Pharma reported the most risks in the “Tech & Innovation” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Verona Pharma Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $230.29B | 33.48 | 17.60% | 2.05% | 18.03% | 18.11% | |
69 Neutral | $80.10B | 24.47 | 19.11% | 3.86% | 6.28% | -47.11% | |
66 Neutral | $1.10B | 83.22 | 3.42% | ― | 14.88% | -86.70% | |
64 Neutral | $125.40B | ― | -3.15% | ― | 11.64% | -114.72% | |
58 Neutral | $5.31B | ― | -76.51% | ― | ― | -213.94% | |
49 Neutral | $6.90B | 0.02 | -54.05% | 2.46% | 24.91% | -3.14% |
* Healthcare Sector Average
Performance Comparison
VRNA
Verona Pharma
67.60
50.91
305.03%
AZN
AstraZeneca
75.57
9.32
14.07%
GSK
GlaxoSmithKline
38.88
-2.83
-6.78%
INVA
Innoviva
17.41
2.66
18.03%
VRTX
Vertex Pharmaceuticals
495.42
82.22
19.90%
Verona Pharma Earnings Call Summary
Earnings Call Date: Feb 27, 2025 | % Change Since: 6.42% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment overall, driven by the successful launch and strong initial sales of O2VARE, significant prescriber adoption, and strategic global expansion efforts. However, increased costs and losses and some challenges with reimbursement are noted as areas of concern.Highlights
Successful Launch of O2VARE
In the first full quarter of commercial availability, net sales of O2VARE were $36.6 million in Q4 and $42.3 million for the full year 2024. The launch momentum is strong with more prescriptions dispensed in the first two months of Q1 2025 than in Q4 2024.
Positive Prescriber Adoption
Over 4,600 unique HCPs are prescribing O2VARE, including 55% of 2,500 tier one HCPs. Over 275 HCPs have prescribed O2VARE to more than 20 patients in their practice.
Global Expansion and Regulatory Advances
Nuance Pharma announced the approval of O2VARE in Macau and completed enrollment in its pivotal Phase 3 clinical trial in China. Preparations are underway for potential marketing authorization applications in the EU and UK.
Strong Financial Position
Verona Pharma ended 2024 with $400 million in cash and equivalents, with access to up to $425 million of additional capital through the Oak Creek facility.
Pipeline Progress
Completed Phase 2 clinical trial with glycopyrrolate ALAMA and plans to initiate a Phase 2b trial evaluating a fixed-dose combination of ensifentrine with glycopyrrolate in the second half of 2025.
Lowlights
Increased Costs and Losses
Research and development costs increased to $7.9 million in Q4 2024 from $4.1 million in Q4 2023. Selling, general, and administrative expenses rose to $45.1 million for Q4 2024 from $15 million in Q4 2023. Net loss after tax was $33.8 million in Q4 2024 compared to $14.1 million in Q4 2023.
Reimbursement Challenges
Some discrepancies in prescription reimbursement rates for pulmonologists, with rates ranging widely. Emphasis on patient out-of-pocket costs and the need for supplemental insurance for those on Medicare.
Company Guidance
In the Verona Pharma call discussing their fourth quarter and full year 2024 financial results, significant progress was highlighted, particularly with the launch of O2VARE for COPD treatment. Key metrics included $36.6 million in net sales for Q4 and $42.3 million for the entire year. The launch saw strong uptake, with over 4,600 unique healthcare providers prescribing O2VARE, including 55% of their tier one providers. They observed growth in new patient starts and refills, indicating a positive reception. Financially, they reported a net loss of $33.8 million for Q4, with a $400 million cash reserve, and access to an additional $425 million. The company continues to expand globally, with O2VARE approved in Macau and ongoing regulatory and marketing authorization efforts in the EU and UK. Additionally, Verona Pharma is progressing with two Phase 2 clinical programs, further emphasizing their commitment to advancing COPD treatments.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.