Mark W. Hahn, Chief Financial Officer of Verona Pharma plc (NASDAQ:VRNA), recently sold a total of 2,400 ordinary shares in two separate transactions. The shares were sold at a price of $5.00 each, amounting to a total transaction value of $12,000. Following these sales, Hahn holds 14,288,936 ordinary shares, which include shares underlying restricted share units and American Depositary Shares (ADSs). The sales were executed as part of a pre-arranged trading plan under Rule 10b5-1, adopted earlier this year.
In other recent news, Verona Pharma revealed impressive third-quarter financial results, with top-line revenue hitting $5.6 million, surpassing Wall Street's highest estimate of $3.5 million. This revenue was generated entirely from sales of Ohtuvayre, Verona Pharma's sole marketed product for treating chronic obstructive pulmonary disease (COPD). Furthermore, the company announced that October 2024 sales of Ohtuvayre exceeded the entire third-quarter sales, indicating significant month-over-month growth.
In response to these developments, H.C. Wainwright maintained a Buy rating on Verona Pharma shares and raised the price target to $42.00 from the previous target of $36.00. The firm also increased its 2024 revenue forecast for Verona to $22.5 million, up from the earlier projection of $12.5 million, and revised its revenue forecast for the full year 2025 upwards to $126.2 million from the previous estimate of $117.3 million.
Despite a net loss of $43 million for the third quarter, Verona Pharma emphasized the successful U.S. launch of Ohtuvayre, with over 5,000 prescriptions filled by the end of October. The company also reported a strong balance sheet, with $336 million in cash and equivalents.
In addition, the company has been assigned a unique J-code for Ohtuvayre, J7601, which is expected to come into effect in January 2025. This is anticipated to aid in the market uptake of the drug. Verona Pharma plans to provide detailed revenue guidance in early 2025 and is focusing on increasing interactions with Tier 1 and Tier 2 physicians to improve prescribing behavior.
InvestingPro Insights
While Mark W. Hahn's recent sale of Verona Pharma plc (NASDAQ:VRNA) shares may raise eyebrows, it's crucial to consider the broader financial picture of the company. According to InvestingPro data, Verona Pharma has shown impressive revenue growth, with a staggering 1127.95% increase in the last twelve months as of Q3 2024. This substantial growth is complemented by the company's strong gross profit margin of 90.34%, indicating efficient cost management in its core operations.
Despite these positive indicators, investors should note that Verona Pharma is not currently profitable, with a negative operating income of $151.3 million in the same period. This aligns with an InvestingPro Tip suggesting that analysts do not anticipate the company will be profitable this year. However, another InvestingPro Tip highlights that five analysts have revised their earnings upwards for the upcoming period, potentially signaling improved future performance expectations.
The stock's recent performance has been remarkable, with a 230.9% price return over the past six months and a 179.78% return over the last year. This strong momentum has pushed the stock to trade near its 52-week high, as indicated by another InvestingPro Tip.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Verona Pharma, providing a deeper understanding of the company's financial health and market position.
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