Verona Pharma stock has gained 22% in four days – here’s why.
Verona Pharma (VRN.A) shares hit a record high Thursday — up as much as 22 percent in the past four days — on continued enthusiasm for its COPD treatment Otuvaire.
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Otuvir received Food and Drug Administration approval last summer to treat chronic obstructive pulmonary disease, or COPD. COPD is a chronic disease that damages the lungs and makes breathing difficult. Patients often experience frustration, a period of increased symptoms.
Verona Medicine is the first inhaled treatment for COPD that relaxes the muscles in the lungs and widens the airways. It is also not a steroid.
Despite its early days, analysts are bullish. All nine analysts covering Verona Pharma stock on FactSet have a buy rating.
“Momentum will continue on the back of a strong Ohtu launch,” Trust analyst Jun Lee said in a note to clients earlier this week.
Shares of Verona Pharma rose more than 6 percent to 53.69 in midday trading on the stock market today. Shares have traded above their 50-day moving average since early July, he said. Marketing promotion. In the year In 2024, Verona’s shares showed a nearly 134% gain.
Verona stock has a near-perfect IBD Digital Relative Strength Rating of 98, putting it in the top 2 percent of all stocks when it comes to trailing 12-month performance.
Shares of Verona Pharmacy rose on pre-announcement.
Verona’s administration did not specify Ohtuvair’s launch, saying instead that the company wants to collect measurements over 20 weeks to make reliable predictions.
Still on Jan. 7, the company forecast sales of $36 million and $42 million for the fourth quarter and 2024 respectively. Both figures were higher than analysts’ estimates of $28 million and $33.2 million, respectively, according to FactSet. Shares of Verona Pharma rose 10.6 percent that day.
During an investor breakfast, company executives were bullish on Otuvair’s startup because of its unique approach to COPD treatment. Regeneron Pharmaceuticals (Rain) and Sanofi()Cut) Dupixent blocks an inflammatory cytokine called IL-4. This cytokine is associated with type 2 inflammation. This type of inflammation is caused by high levels of white blood cells called eosinophils.
Otuvir, on the other hand, blocks two enzymes called PDE3 and PDE4. This allows it to act as an anti-inflammatory and bronchodilator. It also works on types of tumors.
Trust Lee notes that there is “a growing focus on the importance of reducing the use of inhaled corticosteroids”. Corticosteroids can cause inflammation in the body and lead to other problems. This may make OhtuVair a better choice for COPD treatment than corticosteroids.
Promising prospects for 2025
For Verona Pharma stock, more than 80% of patients pay less than $10 for OhtuVair. Most pay zero, Lee said.
It is important to note that OhtuVair is a nebulizer, a device that converts liquid medicine into an inhaled mist. But that didn’t stop him from taking it. The management emphasized that “innovation brings a way of management”.
Lee maintains Buy on Verona Pharma with a price target of 57.
In another report, analysts at Piper Sandler noted that Ottuvier received the J-Code on January 1. A J-code is a billing code, which allows doctors to bill insurance for drugs. Also this year, Verona expects to have Phase 3 data from a study of Ohtuvayre in patients with moderate to severe COPD.
The investment bank has a buy rating and a 76 price target on Verona Pharma stock.
Follow Alison Gatlin on X/Twitter @IBD_AGAtlin.
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