Verona Pharma stock maintains Buy rating from H.C. Wainwright By Investing.com

Verona Pharma (NASDAQ: NASDAQ:) sustained a Buy rating and a $36.00 price target from H.C. Wainwright, following the announcement that its regional partner, Nuance Pharma, has completed patient enrollment for the pivotal Ohtuvayre (ensifentrine) trial in China.

The ENHANCE-CHINA study, a Phase 3 clinical trial, is evaluating the efficacy and safety of ensifentrine in adults with moderate to severe chronic obstructive pulmonary disease (COPD). The trial is being conducted across 46 hospitals in mainland China, with expectations for top-line data to become available in the second half of 2025.

The U.S. launch of Ohtuvayre is currently in progress, following the FDA’s approval in late June 2024. Verona Pharma has also been out-licensing the regional rights to Nuance Pharma, which covers Greater China, including mainland China, Hong Kong, Macau, and Taiwan, since 2021. This strategic partnership has been a significant step for Verona Pharma in expanding its global reach.

Additionally, Verona Pharma is anticipating the assignment of a unique J-code for Ohtuvayre in January 2025. The firm believes that the J-code will likely enhance the drug’s market penetration.

The analyst from H.C. Wainwright highlighted the importance of the J-code, suggesting it would support market uptake once implemented.

In other recent news, Verona Pharma has reported significant developments. The company’s second-quarter results for 2024 were highlighted by the FDA approval and launch of Ohtuvayre, a maintenance treatment for chronic obstructive pulmonary disease (COPD).

The company has initiated patient shipments through specialty pharmacies, targeting approximately 14,500 healthcare providers in the U.S. Verona Pharma’s financial position remains strong, with cash reserves exceeding $400 million.

Piper Sandler has reiterated its Overweight rating on Verona Pharma shares, maintaining a steady price target of $36.00. The firm’s stance follows recent virtual investor meetings with the company’s management and underscores the firm’s confidence in Verona Pharma’s trajectory. The company is also advancing its pipeline with two new Phase 2 programs in the third quarter.

The management team at Verona Pharma has expressed optimism about the early success of Ohtuvayre, citing over 100 prescribers and a swift average time of roughly 5-7 business days from prescription to fulfillment. Furthermore, the Wholesale Acquisition Cost (WAC) for Ohtuvayre is set at $22,950, and the company is confident in its pricing strategy.

InvestingPro Insights

As Verona Pharma (NASDAQ:VRNA) continues to make strides in the global COPD treatment market, real-time data from InvestingPro provides a deeper financial perspective on the company. With a market capitalization of $2.45 billion, Verona Pharma holds a significant position in the biopharmaceutical industry. Despite the lack of profitability over the last twelve months, and a negative P/E ratio of -17.11, the company has demonstrated a strong return over the last year with a 51.74% price total return. This performance is reflected in the stock trading near its 52-week high, at 99.01% of the peak.

InvestingPro Tips indicate that Verona Pharma maintains more cash than debt on its balance sheet, which could be a sign of financial stability. Moreover, the company’s liquid assets exceed its short-term obligations, providing it with financial flexibility. It’s worth noting that while analysts have revised their earnings downwards for the upcoming period, and do not anticipate the company will be profitable this year, the significant return over the past week suggests investor optimism. For those interested in further analysis, InvestingPro offers additional tips on Verona Pharma, which can be found at InvestingPro.

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