In This Article:
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Net Sales of Ohtuvayre (Q4 2024): $36.6 million
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Net Sales of Ohtuvayre (Full Year 2024): $42.3 million
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Cost of Ohtuvayre Sales (Q4 2024): $2 million
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Cost of Ohtuvayre Sales (Full Year 2024): $2.6 million
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Research and Development Costs (Q4 2024): $7.9 million
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Research and Development Costs (Full Year 2024): $44.6 million
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Selling, General and Administrative Expenses (Q4 2024): $45.1 million
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Selling, General and Administrative Expenses (Full Year 2024): $149.8 million
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Net Loss After Tax (Q4 2024): $33.8 million
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Net Loss After Tax (Full Year 2024): $173.4 million
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Cash and Equivalents (End of 2024): $400 million
Release Date: February 27, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Verona Pharma PLC (NASDAQ:VRNA) successfully launched Ohtuvayre, the first inhaled therapy with a novel mechanism for COPD in over 20 years, achieving $36.6 million in sales in Q4 2024.
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The company reported strong initial momentum for Ohtuvayre with more prescriptions dispensed in the first two months of Q1 2025 than in Q4 2024.
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Over 4,600 unique healthcare providers (HCPs) have prescribed Ohtuvayre, with 55% of Tier 1 HCPs prescribing it, indicating strong market penetration.
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Verona Pharma PLC (NASDAQ:VRNA) has a robust pipeline with two Phase 2 clinical programs advancing, including a fixed dose combination trial for COPD.
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The company maintains a strong balance sheet with $400 million in cash and equivalents, providing financial stability for future growth initiatives.
Negative Points
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Verona Pharma PLC (NASDAQ:VRNA) reported a net loss of $33.8 million for Q4 2024, reflecting increased expenses related to the launch of Ohtuvayre.
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Research and development costs increased significantly to $44.6 million for 2024, driven by clinical trial and development expenses.
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Selling, general, and administrative expenses rose to $149.8 million for 2024, primarily due to marketing and commercial activities for Ohtuvayre.
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The company faces potential headwinds from insurance resets and deductibles in Q1, which could impact sales and prescription fills.
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Despite the successful launch, Verona Pharma PLC (NASDAQ:VRNA) has not yet reached cash flow break-even, with expectations to achieve this at a $250-$300 million annual sales rate.
Q & A Highlights
Q: Can you help us understand the impact of insurance resets and deductibles on Q1 sales and whether it affects gross net or filled prescriptions? A: Mark Hahn, Chief Financial Officer: The main impact would be on commercial co-pay assistance due to high deductibles, but since commercial patients are a small portion, it won't significantly affect gross to net in Q1. Christopher Martin, Chief Commercial Officer: The momentum of the launch should outweigh any deductible resets, and we expect increasing new patients and refills despite these resets.