12 April 2011 -- Vernalis plc (LSE: VER) today announces its results for the year ended 31 December 2010.
Highlights from our marketed drugs and research and development pipeline
- Frovatriptan Menarini royalties:
- Regained entire rights from Paul Capital Healthcare (March 2010)
- AUY922 (Cancer):
- Initiation of Phase II proof-of-concept study, triggering $3 million milestone from Novartis (March 2010)
- V158866 (Pain):
- First subjects dosed in Phase I clinical study (March 2011)
- Tosedostat - CHR2797 (Cancer):
- Licensing deal secured by Chroma Therapeutics for North, Central and South America (March 2011)
- Orphan drug status granted for Acute Myeloid Leukaemia by the US Food and Drug Administration and European Medicines Agency
- Phase III studies targeted to start in Q4 2011
- V81444 (Parkinson’s Disease):
- As separately announced today, rights successfully regained to A2A programme from Biogen Idec following a strategic review of their priority programmes (April 2011)
- Phase I ready, approved by MHRA for first dosing in man
- Phase I trial expected to start during 2011 following transition back to Vernalis
- HSP990 (Cancer):
- Continuing in Phase I MTD studies
- V3381 (Neuropathic Pain and Chronic Cough):
- Programme discontinued and rights returned to Chiesi (November 2010)
- V2006 (Parkinson’s Disease):
- Programme redirected by Biogen Idec to V81444 (July 2010) due to V2006 compound-specific safety concerns
- Research highlights:
- Oncology collaboration with Servier extended (May 2010)
- Milestone of €0.75 million secured from second Servier oncology collaboration (October 2010)
- New collaboration with Lundbeck signed targeting LRRK2, with potential utility in Parkinson’s disease (December 2010)
Financial Highlights
- Dramatically improved trading results in 2010 (vs 2009):
- Revenues up 9% to £14.2 million (2009: £13.0 million)
- Menarini frovatriptan royalties £7.0 million (2009: £7.5 million)
- Underlying sales of frovatriptan €31.3 million (2009: €32.4 million) down marginally (3.4%) due to price reductions in Germany (up 2.9% on 2009 excluding Germany)
- Collaboration income and deferred revenue up 27% to £7.0 million (2009: £5.5 million)
- Underlying operating costs reduced by £1.4 million in 2010 in addition to £3.5 million reduction in 2009
- Loss before exceptional items for 2010 reduced by 75% to £2.8 million from £11.3 million in 2009
- Underlying annual net cash burn reduced by £10.1 million (70%) to £4.4 million
- Cash resources (including cash, cash equivalents and held-to-maturity financial assets) of £30.9 million at 31 December 2010, debt free and a runway through to the end of 2013
Expected Newsflow
- V158866 (pain): Complete Phase I trials (H2 2011)
- Tosedostat (cancer): Initiate Phase III trials (Q4 2011)
- V81444 (Parkinson’s disease): Initiate Phase I trials (2011)
- V158411 (cancer): Complete pre-clinical studies and file IND/CTA (2011)
- V85546 (inflammation): Possible partnering and/or start Phase II studies (2011)
- AUY922 (cancer): Multiple Phase I & II study results (Novartis) (timing undisclosed)
- HSP990 (cancer): Establish Maximum Tolerated Dose (Novartis) (timing undisclosed)
Ian Garland, Chief Executive Officer, commented, “We have transformed Vernalis financially over the last two years and dramatically reduced our annual net cash burn. Our strong balance sheet and focused strategy positions us well to create value for our shareholders in what is an inherently risky sector. By realising value from our existing programmes and adding later stage products through M&A and in-licensing, over time we aim to transition Vernalis from a cash burning development stage company into a diversified self-sustaining pharmaceutical company.”
Presentation & Conference Call
Vernalis management will host a presentation at 09.00am (UK) at Brunswick’s offices, 16 Lincoln’s Inn Fields, London WC2A 3ED today. It will also be available via webcast at http://www.vernalis.com/investor-centre/presentations-and- webcasts and www.cantos.com and via conference call, which can be joined by dialling + 44 (0)20 3140 0724.
Enquiries:
Vernalis Contacts
Ian Garland, Chief Executive Officer
+44 (0) 118 989 9360
David Mackney, Chief Financial Officer
Brunswick Group
Jon Coles
+44 (0) 20 7404 5959
Justine McIlroy
Taylor Rafferty
Rob Newman
+44 (0) 20 7614 2900
Faisal Kanth
About Vernalis
Vernalis is a development stage pharmaceutical company with significant expertise in taking promising product candidates along a commercially-focused path to market. The Group has one marketed product, frovatriptan for the acute treatment of migraine, and eight candidates in development, seven of which are designated priority programmes. Four of these priority development programmes are currently unpartnered and three are partnered. Pipeline programmes are derived from both our own research activities where we have significant expertise in fragment and structure based drug discovery, as well as from collaborations. Our technologies, capabilities and products are endorsed by collaborations with Endo, GSK, Lundbeck, Menarini, Novartis and Servier.
