Jun 30, 2021

Verona Pharma Q2 2021 Earnings Report

Reported financial results for the second quarter of 2021 and provided a corporate update.

Key Takeaways

Verona Pharma reported progress on their Phase 3 ENHANCE program and a strategic collaboration with Nuance Pharma. They also announced their Q2 2021 financial results, including a net loss of $22.1 million and cash and cash equivalents of $146.0 million.

Phase 3 ENHANCE program is on track to report top-line data in 2022.

Strategic collaboration with Nuance Pharma in Greater China for up to $219 million.

ENHANCE-2 expected to report top-line data in the first half of 2022 and ENHANCE-1 in the second half of 2022.

Received $40.0 million upfront payment from Nuance Pharma, consisting of $25.0 million in cash and an equity interest valued at $15.0 million.

EPS
-$0.4
Previous year: -$0.72
-44.4%
Cash and Equivalents
$146M
Previous year: $22.4M
+553.1%
Free Cash Flow
-$20.2M
Previous year: -$3.06M
+560.1%
Total Assets
$219M

Verona Pharma

Verona Pharma

Forward Guidance

Verona Pharma expects to report top-line data from ENHANCE-2 in the first half of 2022 and ENHANCE-1 in the second half of 2022, but these timelines may be affected by the COVID-19 pandemic.

Positive Outlook

  • ENHANCE Phase 3 program on track to report top-line data in 2022
  • Strategic collaboration with Nuance Pharma provides additional funds to support development efforts
  • Expect ENHANCE-2 to be approximately 70% enrolled by the end of August.
  • Expect the 48-week subset in ENHANCE-1 to be approximately 80% enrolled by the end of August.
  • Company believes cash and cash equivalents will enable funding of planned operating expenses and capital expenditure requirements through at least 2023.

Challenges Ahead

  • COVID-19 related challenges have put pressure on recruitment timelines.
  • Timelines may be affected by the COVID-19 pandemic.
  • Models predict top-line data would be expected in the third quarter of 2022 from ENHANCE-2 and the fourth quarter of 2022 from ENHANCE-1 should COVID-19 related challenges continue to increase.
  • The COVID-19 pandemic continues to impact a number of clinical trial activities.
  • Closely monitoring the potential impact of the COVID-19 pandemic on its operations and clinical trials.