Moxatag supply issues looming for Vernalis

Vernalis warned investors on Thursday of looming supply issues with an upcoming drug it will distribute - Moxatag - as its Ireland-based supplier Suir Pharma was placed into provisional liquidation.

The AIM-traded company said information was limited at this time, but it had been informed by the liquidator that it intends to seek a purchaser for the business as a going concern.

“Suir has already supplied launch stocks of Moxatag to Vernalis, which are currently stored at its Vernalis’ third-party warehouse in the US and are available for supply to wholesale customers,” its board said in a statement.

“The timing of further supplies is now uncertain as Suir is currently the only approved supplier under the Moxatag New Drug Application.”

Vernalis confirmed that the launch of Moxatag will still occur in the coming summer, but the uncertainty of further supply will limit its additional promotion of the product until there is more certainty over the timing of ongoing supply.

“This will not have a material impact on our financial position or our trading results for the financial years ending 30 June 2016 and 2017,” the board added.