Edison Investment Research - Vernalis PLC (VER) Update: Establishing a firm foundation

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Edison Investment Research

Update: Establishing a firm foundation

Vernalis reported a modest Â£0.6m in Tuzistra XR sales over the first four months post-launch due to the mild cough cold season. The US launch of this prescription-only (Rx), extended release (ER) cough cold medicine is the first step in Vernalisâ€™s transition into a commercial-stage speciality pharma company, targeting a $3.5bn market opportunity. The emphasis for year one of Tuzistra XR commercialisation is operational: establishing the platform for future sales growth. However, financial performance, in particular, during its second year on the market, will be an important determinant of whether Vernalis will need to raise new funds near term.

06/04/2016 10 EN

Underlying

Vernalis PLC

Vernalis is a holding company. Through its subsidiaries, Co. is a commercial stage pharmaceutical company focused on drug development. Co. has three marketed products: Tuzistra® XR, in the U.S. prescription cough cold market; Moxatag®, the only once-daily amoxicillin approved in the U.S. for tonsillitis and pharyngitis; and frovatriptan, an acute treatment for migraine. In addition, Co.'s nine programs in its new chemical entity development pipeline are: V158866 for central nervous system indications; CP1-444 and V2006 for immuno-oncology indications; AUY922, Tosedostat, Bcl-2, Mcl-1, and V158411 for cancer indications; and RPL554 for chronic obstructive pulmonary disease indications.

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GB00B3Y5L754 United Kingdom

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Update: Establishing a firm foundation

CMD showcases expertise and strategy

Vernalis - Operational initiatives in place, execution is key

Tuzistra XR steady growth in Rx run rate

On the Beach Group - Feeling festive

Pan African Resources - An accounting storm in a legal teacup

Cereno Scientific - All eyes on Q3 readout after Q1 update

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