LONDON—Verona Pharma plc (NASDAQ:VRNA) announced that its Chief Medical (TASE:PMCN) Officer, Kathleen A. Rickard, has sold a significant portion of her holdings in the company. According to a recent SEC filing, Rickard sold 240,000 ordinary shares on November 25, 2024, with a total transaction value of approximately $1.18 million. The shares were sold at a weighted average price of $4.9015 each, with actual sale prices ranging from $4.875 to $4.9075 per share.
The transaction was conducted as part of a pre-established Rule 10b5-1 trading plan, which Rickard adopted on February 17, 2023. Following this sale, she retains 2,671,480 ordinary shares, which include shares underlying restricted share units and American Depositary Shares (ADSs).
Verona Pharma, a pharmaceutical company based in London, continues to focus on developing treatments for respiratory diseases.
In other recent news, Verona Pharma has been in the spotlight following its strong third-quarter financial results. The company reported $5.6 million in top-line revenue, exceeding the highest Wall Street estimate of $3.5 million. This revenue was entirely generated from sales of Ohtuvayre, Verona Pharma's only marketed product, which is used for treating chronic obstructive pulmonary disease (COPD).
Following these results, H.C. Wainwright maintained a Buy rating on Verona Pharma shares and raised the price target to $42.00 from the previous target of $36.00. In addition, the firm has increased its 2024 revenue forecast for Verona to $22.5 million, up from the earlier projection of $12.5 million.
Recent developments also include the approval of a unique J-code for Ohtuvayre, J7601, by CMS, which is expected to come into effect in January 2025. Despite a net loss of $43 million for Q3, Verona Pharma emphasized the successful launch of Ohtuvayre in the U.S., with net product sales of $5.6 million within the first seven weeks post-launch. Finally, the company plans to provide detailed revenue guidance in early 2025 and is focusing on increasing interactions with Tier 1 and Tier 2 physicians to improve prescribing behavior.
InvestingPro Insights
Verona Pharma's recent insider sale by its Chief Medical Officer comes amid a period of significant stock performance for the company. According to InvestingPro data, VRNA has shown a strong return of 179.78% over the last year, with an impressive 230.9% price increase over the past six months. This robust performance has brought the stock to trade near its 52-week high, with the current price at 99.28% of that peak.
Despite the positive stock momentum, InvestingPro Tips highlight some financial challenges. The company is not expected to be profitable this year, and its net income is projected to decrease. However, Verona Pharma boasts impressive gross profit margins, which stood at 90.34% for the last twelve months as of Q3 2024. This indicates strong pricing power for its products or efficient cost management in its core operations.
It's worth noting that 5 analysts have revised their earnings upwards for the upcoming period, suggesting some optimism about the company's near-term prospects. Additionally, Verona Pharma operates with a moderate level of debt and has liquid assets exceeding short-term obligations, which could provide financial flexibility as it continues to develop its respiratory disease treatments.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Verona Pharma, providing a deeper understanding of the company's financial health and market position.
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