Verona Pharma Release: Interim Results For The Six Months Ended 30 June 2014

11 September 2014, Cardiff – Verona Pharma plc (AIM: VRP), the drug development company focused on first-in-class medicines to treat respiratory diseases, today announces its interim results for the six months ended 30 June 2014.

OPERATIONAL HIGHLIGHTS

• Development of a novel, commercially scalable, nebulized formulation of RPL554, our lead pipeline candidate. RPL554 is a novel PDE3/PDE4 inhibitor for the treatment of respiratory diseases, including COPD and asthma.

  o Studies have demonstrated very attractive properties compared to previous formulation.

• Commenced preparations for further clinical studies of RPL554 to demonstrate the safety and efficacy of the new formulation in the treatment of COPD patients.

• Data presented on the synergistic bronchodilator effects of RPL554 when used in combination with anti-muscarinic agents and beta2-agonists.

FINANCIAL HIGHLIGHTS

• Completed a £14.02m (gross) share placing, subscription and open offer in March 2014. All existing institutional shareholders participated together with a number of new healthcare–focused investors.

• Loss after tax for the period of £1.40 million (2013: £1.02 million) or 0.19 pence (2013: 0.31 pence) per ordinary share.

• Net cash outflows from operating activities during the six month period of £1.47m (2013: £1.29m), with cash and cash equivalents as at 30 June 2014 of £12.10 million (2013: £0.93 million).

Dr. Jan-Anders Karlsson, CEO of Verona Pharma commented: “We are pleased with the progress made during the period in our lead drug development programme, RPL554, and the opportunities for its further development and commercialisation. The financing raised in March 2014 enables us to advance the new commercially-scalable proprietary formulation for the product, through clinical studies up to the start of Phase 2b, which is expected in 2016. Our initial focus remains to develop the drug for hospital use in the treatment of acute exacerbations of COPD, where reducing re-admission rates is an emerging pharmacoeconomic impetus.

“The Board believes that products combining RPL554 with other classes of bronchodilators are potentially highly attractive for the respiratory market. We also plan to expand the use of RPL554 beyond COPD. As we have previously stated, the Company recognises that the right development partner could bring significant value to the development of RPL554 for chronic maintenance treatment in COPD and perhaps asthma and therefore continues to be involved in business development discussions around the RPL554 programme. However, the Company intends to partner its drug candidates only when it can extract a commercially attractive return for the Company and its Shareholders.”

For further information please contact:

Verona Pharma plc
Tel: +44 (0) 20 7863 3300
Jan-Anders Karlsson, CEO

N+1 Singer
Tel: +44 (0)20 7496 3000
Aubrey Powell / Jen Boorer

FTI Consulting
Tel: +44 (0)20 3727 1000
Julia Phillips / Simon Conway

Notes to Editors

About Verona Pharma plc

Verona Pharma is developing first-in-class drugs to treat respiratory disease, such as COPD and asthma. The Company currently has two drug programmes, one of which is in Phase II trials for two diseases. The lead programme, RPL554, is an innovative dual phosphodiesterase (PDE) 3 and 4 inhibitor with both bronchodilator and anti-inflammatory properties. In its second programme, Verona Pharma is investigating novel anti-inflammatory molecules, called NAIPs, for a wide range of respiratory and inflammatory diseases.

Help employers find you! Check out all the jobs and post your resume.