News blog
Verona Pharma
- BY: Andrew Hore |
- POSTED: 11/09/2009 |
Verona Pharma says that as clinical trial has shown that RPL554 is safe and effective as a treatment for asthma.
This sparked a 4.75p increase in the share price to 17.5p. That values the respiratory disease treatments developer at £27.5m.
RPL554 is an inhaled asthma and hay fever treatment, which does not include steroids. The phase I/IIa trial took place at the Centre for Human Drug Research in the Netherlands.
Now it knows that the results are positive Verona intends to start talking to large pharma companies about licensing the drug. There have already been some companies that have shown interest. Three have signed confidentiality agreements.
Existing treatments are coming up to the expiry of their patents so pharma companies are looking for replacements.
Verona has a team of experienced negotiators and figures of between £50m and £100m have been mentioned as the value of a deal up until the drug is launched and then double digit royalties if it becomes a product. There is also talk of an upfront payment of at least £10m. This seems optimistic but Verona believes it could be even higher.
If RPL554 is licensed to a large pharma company then Verona will increase its focus on a project researching cough prevention treatment and another project based on how starfish stop things from sticking to them. Verona believes it can manage three potential drugs at any one time. Another drug will be added to the pipeline.
There was an operating cash outflow of £783,000 in the first half of 2009. There was still £1.67m in the bank at the end of June 2009.
Dr Patrick Humphrey has been appointed to the Verona board.
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