Interim results for the six months ended 30 June 2010

 

29 July 2010

LSE: VER

Interim results for the six months ended 30 June 2010

Vernalis plc, a leading development stage pharmaceutical company with a broad pipeline of clinical and early stage programmes, today announces its interim results for the six months ended 30 June 2010.

 

Highlights

Financials

  • £28.5 million (net of expenses) equity financing in March
  • Strong balance sheet with £33.8 million cash resources at 30 June 2010 and debt free
  • Revenue £7.2  million (2009: £5.7 million), up  26%
  • Rigorous attention to cost control reduces underlying operating cost base by 18% to £7.8 million (2009: £9.5 million)
  • Operating loss reduced to £1.1 million (2009: £5.3 million)
  • Underlying cash burn (excluding foreign exchange, tax and interest) reduced to £2.7 million (2009: £8.2 million)

Marketed products

  • Regained 100% of Menarini frovatriptan royalty stream with effect from 1 January 2010
  • Underlying Menarini sales through to 30 June 2010 up 9% compared to same period in 2009

Pipeline news

  • AUY922 (Cancer) – Novartis initiated Phase II study, triggering $3 million milestone receipt
  • Indantadol (V3381) (Neuropathic pain) – negative data from Phase IIb IN-STEP study
  • Vipadenant (V2006) (Parkinson’s disease) – development switched to next generation molecule following vipadenant pre-clinical toxicology findings
  • V158866 (pain) and V158411 (cancer) update – both programmes are now anticipated to enter Phase I in 2011

Research

  • Oncology research collaboration with Servier extended after successful completion of initial 3-year term

Anticipated newsflow

  • AUY922 – complete Phase II proof of concept (Novartis)

2010

  • V3381 – complete Chronic Cough recruitment

2010

  • V85546 – possible partnering

2010

  • 2nd generation A2A antagonist – enter Phase I (Biogen Idec)

H1 2011

  • HSP990 – establish maximum tolerated dose (Novartis)

Undisclosed

  • V158866, pain – file IND or CTA / start Phase I

2011

  • V158411, cancer – file IND or CTA / start Phase I

2011

  • Secure in-licensing or M&A deal

Undisclosed

 

Ian Garland, Chief Executive Officer, commented: “Vernalis ended the first half of 2010 in a strong financial position having successfully completed an equity financing and regaining all rights to the growing Menarini royalty stream.  The key medium term priority is to leverage this financial strength to expand the pipeline through in-licensing or acquisition.”

 

-- ends --

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

Will Carnwath

 

Taylor Rafferty

 

Rob Newman

+44 (0) 20 7614 2900

Faisal Kanth

 

Notes to Editors

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 ten candidates in development, seven of which are designated priority programmes.  Five of these priority 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 Biogen Idec, Chiesi, Endo, GSK, Menarini, Novartis and Servier.

 


Product

Indication

Pre-Clinical

Phase I

Phase II

Phase III

Marketed

Marketing Rights

Priority Programmes

CNS Programmes

Frovatriptan

Acute Migraine

X

Menarini & Endo Pharma

V3381

Neuropathic Pain

X

Worldwide

V3381 CC

Chronic Cough

X

Worldwide

2nd generation A2A antagonist

Parkinson’s Disease

X

Biogen Idec

V158866

Pain

X

Worldwide

Oncology Programmes

AUY922

Cancer

X

Novartis

HSP990

Cancer

X

Novartis

V158411

Cancer

X

Worldwide

Other Therapeutic Areas

V85546

Inflammatory Disease

X

Worldwide

Legacy programmes

V10153

Ischaemic Stroke

X

Worldwide

RPL554

Asthma/ Allergic Rhinitis

X

Verona Pharma

CHR2797

Cancer

X

Chroma Therapeutics

 

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Vernalis Forward-Looking Statement

This news release may contain forward-looking statements that reflect the Company's current expectations regarding future events including the clinical development and regulatory clearance of the Company's products, the Company's ability to find partners for the development and commercialisation of its products, as well as the Company's future capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of the Company's research strategies, the applicability of the discoveries made therein, the successful and timely completion of clinical studies, the uncertainties related to the regulatory process, the ability of the Company to identify and agree beneficial terms with suitable partners for the commercialisation and/or development of its products, as well as the achievement of expected synergies from such transactions, the acceptance of Frova® and other products by consumers and medical professionals, the successful integration of completed mergers and acquisitions and achievement of expected synergies from such transactions, and the ability of the Company to identify and consummate suitable strategic and business combination transactions.