David R. Ebsworth, a director at Verona Pharma plc (NASDAQ:VRNA), recently acquired 20,000 ordinary shares of the company, as disclosed in a recent SEC filing. The shares were purchased at a price of $4.44 each, amounting to a total transaction value of $88,800. Following this acquisition, Ebsworth holds a total of 940,003 ordinary shares in Verona Pharma. These shares are represented by American Depositary Shares (ADSs), with each ADS corresponding to eight ordinary shares.
In other recent news, Verona Pharma reported strong Q3 results, with revenue reaching $5.6 million, surpassing Wall Street's highest estimate of $3.5 million. This revenue was generated solely from sales of Ohtuvayre, their FDA-approved treatment for chronic obstructive pulmonary disease (COPD). In light of these results, H.C. Wainwright maintained a Buy rating on Verona Pharma shares and increased the price target to $42.00. The firm also raised its 2024 revenue forecast for Verona to $22.5 million and its 2025 revenue forecast to $126.2 million.
Verona Pharma also reported a net loss of $43 million for Q3. Despite this, the launch of Ohtuvayre was successful, with net product sales of $5.6 million within the first seven weeks post-launch and over 5,000 prescriptions filled by the end of October. The company maintains a strong balance sheet, with $336 million in cash and equivalents.
In other developments, a permanent J-code for Ohtuvayre has been approved by CMS, effective January 2025. Additionally, 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. These recent developments have created a positive outlook for Verona Pharma's future growth.
InvestingPro Insights
David R. Ebsworth's recent purchase of Verona Pharma shares aligns with several positive indicators highlighted by InvestingPro. Despite the stock taking a significant hit over the last week, with a 10.56% decline, Verona Pharma has demonstrated impressive performance over longer periods. The company has shown a strong return of 29.72% over the last three months and a remarkable 174.31% increase over the past six months.
InvestingPro Tips suggest that Verona Pharma operates with impressive gross profit margins, which stood at 90.34% for the last twelve months as of Q3 2024. This financial strength is further supported by the company's liquid assets exceeding short-term obligations, indicating a solid financial position.
However, investors should note that Verona Pharma is currently trading at a high revenue valuation multiple and a high Price / Book ratio of 21.91. While these metrics might suggest an elevated valuation, they should be considered in the context of the company's growth prospects and the biotech industry's dynamics.
For those seeking a more comprehensive analysis, InvestingPro offers 14 additional tips for Verona Pharma, providing a deeper understanding of the company's financial health and market position.
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