H.C. Wainwright keeps ‘Buy’ on Verona Pharma stock, cites Ohtuvayre launch plans By Investing.com

On Monday, H.C. Wainwright reaffirmed its Buy rating and $36.00 price target for Verona Pharma (NASDAQ:) stock, as the company prepares for the imminent U.S. launch of its newly approved chronic obstructive pulmonary disease (COPD) treatment, Ohtuvayre (ensifentrine).

Ohtuvayre, which received FDA approval last week, is designed for the maintenance treatment of COPD in adult patients. The drug is administered via a standard jet nebulizer, simplifying its use as it does not require high inspiratory flow rates or complex hand-breath coordination.

Verona Pharma has already completed extensive preparations for the commercial launch, including hiring approximately 120 staff members dedicated to the product’s rollout.

The firm noted that Ohtuvayre is expected to quickly penetrate the market following its launch, which is slated for the third quarter of 2024. Verona Pharma has established an exclusive network of accredited specialty pharmacies to facilitate the distribution of ensifentrine.

The pricing of ensifentrine has been set at $2,950 per month, which significantly exceeds the previously forecasted annual cost of $15,000. Verona Pharma has fulfilled a milestone payment of $5.8 million to its development partner upon FDA approval and anticipates an additional payment of $13.8 million at the time of the product’s launch. Additionally, the company will pay a low single-digit royalty on the global net sales of Ohtuvayre.

H.C. Wainwright’s endorsement of Verona Pharma’s stock reflects confidence in the company’s commercial strategy and the potential market uptake of Ohtuvayre. The firm’s $36.00 price target is set for a 12-month period per American Depositary Share (ADS).

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