Verona Pharma Reports Financial Developments, Including Increased Cash Reserves and Revenue from Newly Launched COPD Treatment

Verona Pharma plc reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, focused on developing therapeutics for respiratory diseases, achieved a cash and cash equivalents balance of $336.0 million, up from $271.8 million at the end of 2023. Total current assets also increased to $364.3 million from $289.7 million, while total assets rose to $381.8 million compared to $308.1 million at year-end 2023. However, total liabilities surged to $251.3 million from $58.8 million, reflecting increased financial obligations.

Verona Pharma's accumulated deficit expanded to $528.5 million as of September 30, 2024, compared to $388.4 million at the end of 2023. Total shareholders' equity decreased to $130.5 million from $249.3 million, indicating a challenging financial landscape.

The company reported product sales of $5.6 million for the three and nine months ended September 30, 2024, marking the initial revenue from its recently launched product, Ohtuvayre (ensifentrine), which received FDA approval on June 26, 2024, for the maintenance treatment of chronic obstructive pulmonary disease (COPD). The product was launched in August 2024 through an exclusive network of specialty pharmacies. Despite this revenue, Verona Pharma incurred substantial operating losses of $40.7 million for the third quarter and $136.3 million for the nine months, compared to losses of $16.3 million and $48.5 million, respectively, in the same periods of 2023.

Research and development expenses for the third quarter reached $10.6 million, significantly higher than $3.0 million in the prior year, primarily due to increased clinical trial costs. Selling, general, and administrative expenses also rose sharply to $35.2 million from $13.4 million, driven by personnel costs and marketing efforts related to Ohtuvayre.

In terms of financing, Verona Pharma entered into a term loan facility of up to $400.0 million in May 2024, receiving net proceeds of $68.6 million following FDA approval. Additionally, the company secured $100 million through a revenue interest purchase and sale agreement (RIPSA) with Oaktree Fund Administration, LLC, which includes a 6.5% royalty on global net sales of ensifentrine.

Looking ahead, Verona Pharma anticipates continued losses as it invests heavily in the commercialization of Ohtuvayre and further development of its pipeline, including ongoing clinical trials for ensifentrine in various indications. The company expects its current cash reserves to support operations through at least the end of 2026, contingent upon achieving specific commercial milestones.