Verona Pharma excites with asthma trial results

Verona Pharma has published further encouraging clinical results for its RPL554 drug to treat chronic obstructive pulmonary disorder (COPD).

Tests among asthma patients found the inhaled drug, which has both bronchodilator and anti-inflammatory properties in the same active molecule, performed very well compared to current asthma treatment salbutamol.

AIM-listed Verona said the Phase IIa study results showed "substantial" dilation of respiratory airways and "excellent" tolerability at a broad range of doses.

The maximum bronchodilator effect of RPL554 was comparable to the highest dose of salbutamol used in nebulised form to treat acute COPD attacks in hospital emergency departments.

Chief executive Jan-Anders Karlsson said it noteworthy that this effect was achieved with fewer adverse events

RPL554 is being fast-tracked to commercialisation by focusing on a $1bn niche market segment poorly serviced by existing drugs, treating exacerbations of COPD, although test such as this provide encouragement that it could then be developed for other respiratory disease such as asthma and cystic fibrosis.

A "very excited" Karlsson said: "The data generated in this study emphasises its pronounced bronchodilator effect, and combined with its unique anti-inflammatory effects, we continue to believe that RPL554 could be an important, and much needed, new treatment option, either alone or as an add-on to existing drugs, for patients with COPD."

Broker Hardman noted that median prices paid for Phase II respiratory assets have headline valuations of $285m (£190m), equivalent to 19p per share.

"Historically, efficacy of PDE inhibitors has been positive, but putative drugs have failed due to side effects," analysts wrote. "To date, results with the new formulation of RPL554 have exceeded expectations, which augurs well for the pivotal Phase IIb trial due to start in early 2017.

"With big pharma constantly searching for new respiratory assets, RPL554 will definitely be on the radar."

By 1115 GMT on Tuesday, Verona shares were up 11% 4.5p, having earlier topped 5p.