Verona Pharma reports increased cash position despite losses

Verona Pharma, a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for respiratory diseases, posted an update on clinical developments along with its interim results for the six months ended June 30.

Thanks to a successful initial public offering on the NASDAQ the firm raised £70m gross and saw net cash, cash equivalents and short-term investments total £94.6m, more than double the £39.8m it reported on December 31.

Dr. Jan-Anders Karlsson, CEO of Verona Pharma, commented: "It has been a transformative six months for Verona Pharma. Not only have we successfully completed our IPO of ADSs on NASDAQ, but we have also commenced four clinical trials with our lead candidate RPL554, including our first clinical study in the United States following FDA acceptance of our IND application and have continued to expand our senior management."

RPL554 is under development for treatment of chronic obstructive pulmonary disease, cystic fibrosis, and potentially asthma. Phase 2a and 2b clinical trials are underway in both the US and Europe with top-line data expected to be returned across 2017-18.

Top-line data on its Phase2a trial evaluating RPK554 as an add-on therapy to tiotropium to treat COPD was expected in the last quarter of 2017, together with data from the Phase 1 pharmacokinetic trial in the States after the US FDA accepted its investigational new drug application for RPL 554.

"We remain extremely upbeat and look forward to clinical data in the coming months," said N+1 Singer analysts Sheena Berry and Dr.Jens Lindqvist.

For the six months ending June 30, Verona reported an operating loss of £10.9m, a total of £9m more than the same time last year.

According to the statement this loss reflects the "preparation and initiation of clinical trials and expansion of the team," and accounted for a loss per share of 7.3p.

Operating costs totalled £8.2m, a significant increase on last year's £2.2m.

As of 0930 BST, shares in Verona Pharma had creeped up 1.72p to 118.00p.