Verona Pharma's (LON:VRP) £44.7m gross raise removes funding uncertainty, allowing the company to focus on the clinical progress of its respiratory asset RPL554, a dual PDE3/PDE4 inhibitor. RPL554 is in development in chronic obstructive pulmonary disease (COPD) and cystic fibrosis. Verona now has the resources to run a Phase II programme, taking it through multiple potential value infection points in the next 18-24 months, and has committed to raising further funds via a future NASDAQ listing.
Funding secured
New and existing US, UK and European investors, including healthcare specialists, subscribed to the latest offering, raising gross proceeds of £44.7m (c $63.3m). 1,555m new units (representing one placing share and one warrant with an entitlement to subscribe to 0.4 of an ordinary share) were issued at 2.873p. Proceeds will fund a new Phase IIb COPD trial (expected completion 2017/18) and additional Phase II studies in COPD and exploratory trials in cystic fibrosis.
RPL554: Pipeline in a drug
Verona’s focus is on RPL554 development and commercialisation as a nebulised drug of choice for COPD, initially for exacerbations in hospitalised patients, with at-home maintenance therapy targeted as a line extension. RPL554 is a dual PDE3/PDE4 inhibitor, a new bronchodilator class with anti-inflammatory effects, which has demonstrated a cleaner side effect profile to Daxas (the sole approved PDE4 inhibitor). The Phase IIb COPD trial is designed to confirm improved lung function and reduced symptoms, in addition to providing data on time in hospital and readmission rates, a reduction in which could support premium pricing.
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