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Vernalis, all eyes on the new cough/cold drug

Accendo Markets
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Vernalis is a Cambridge, UK based biotech company founded in 2003. The company has marketed two drug products: Frovatriptan is used for the treatment of migraine and Apokyn, for the treatment of advanced Parkinson’s disease. Another seven products are in its pipeline.

The company has a development pipeline focused on CNS disease and oncology, and collaborates with other pharmaceutical companies including Novartis, Servier, ChemGenex and Serono.

Price $1.57
Market cap $332.72m

Source: wall street journal
All eyes on Tuzistra

FDA has accepted the new drug application for the cough and cold drug Tuzistra XR for full review which is due by 30 April 2015. The potential good news leads up price and might bring more rosy news soon. Review results to be released from FDA are likely to dictate the price.

Tris Pharma Inc. is developing these cough and cold drugs on behalf of Vernalis. Tuzistra XR represents the first product within this pipeline to reach new drug application stage. The next drug to be produced might be CCP-07 and CCP-08, currently at the filing stage. The approval of this drug next April would no doubt cheer up this whole pipeline and add fuel to the cough and cold targeted market. Further predictions would need to wait until end of April for the review results from Tuzistra. The approval of the drug would help the company head into the targeted cough and cold market.

A little dip affected by AUY922

Shares in Vernalis experienced a downfall (Shares down 3.75 pence, or 8%, at 46.0 pence) because of the news that Novartis has ceased all development work on AUY922, a drug licensed from the British pharmaceutical company. This programme was out-licensed to Novartis in 2004 and since then Vernalis has made no further investment.
Novartis has been investigating AUY922 for the treatment of a range of solid cancer tumours. Disappointing results finally lead to the hand back of research data. Vernalis will review the data and decide on its next steps and how best to take the programme forward.
The candidate may add future value, but at the near term value, it did not seem to play a strong card. Vernalis’s decisions on assessing the risks associated with AUY922 will indicate its price.

Interim results

Revenue was £6.2 million (H1 2013: £7.6 million), ahead of market expectations. Frovatriptan royalty income at £1.8 million (H1 2013: £2.6 million) was in line with market expectations. Collaboration income was £4.4 million (H1 2013: £5.0 million) with £1.1 million of milestones earned (H1 2013: £2.5 million) and the remaining income derived from FTE funding.
Balance sheet remains strong with £70.3 million of cash resources. Net decrease in cash resources of £6.6 million for the first six months of 2014. Overall, financials remain stable.

“Annie Zeng is a final year PhD candidate in Pharmacology at the University of Cambridge, UK. She joined Accendo Market’s team covering Life Science sector as an analyst from 2014″

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