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On Thursday, Piper Sandler analysts reaffirmed their Overweight rating for Verona Pharma stock (NASDAQ: NASDAQ:VRNA) and maintained a $76.00 price target, as the stock trades near its 52-week high of $86.59. According to InvestingPro data, the company has delivered an impressive 80.84% return year-to-date, with analysts maintaining a Strong Buy consensus. The confirmation follows an investor dinner hosted by the firm, which highlighted the progress of Verona Pharma’s OHTUVAYRE launch and its data collection capabilities.
Verona Pharma, now valued at $7.65 billion, has been expanding its sales force, with 30 new representatives set to start in July. This will bring the total sales team to approximately 120 people, each covering 125-150 doctors. The company, which maintains impressive gross profit margins of 94.95%, has been actively promoting OHTUVAYRE through direct-to-patient strategies, including television advertisements in around 100 offices, with 80% of patients paying less than $10 for the medication.
The company reported that about 80-85% of OHTUVAYRE patients have consented to communication, which is expected to support continued use of the drug. Additionally, Verona Pharma is conducting a Phase 2 trial of ensifentrine, which is 80% powered to detect a hazard ratio of 0.6 and includes a COPD overlap.
Piper Sandler analysts expressed optimism about Verona Pharma’s commercial strategy for OHTUVAYRE, indicating potential for significant growth. They plan to revisit their model as the launch progresses.
In other recent news, Verona Pharma has been the subject of several analyst updates and corporate developments. Analysts at H.C. Wainwright have raised their price target for Verona Pharma to $90, maintaining a Buy rating, following mixed trial results from competitors Regeneron (NASDAQ:REGN) Pharmaceuticals and Sanofi (NASDAQ:SNY). Jefferies also reiterated a Buy rating with a $95 target, emphasizing that Verona Pharma’s drug Ohtuvayre could potentially achieve between $3-5 billion in peak sales, despite competition from biologics. Truist Securities maintained a $100 target for Verona Pharma, citing positive feedback from key opinion leaders on the performance of Ohtuvayre. TD Cowen initiated coverage with a Buy rating and a $100 price target, noting Verona Pharma’s promising trajectory and projecting revenues of $340 million by 2025.
Additionally, Verona Pharma held its Annual General Meeting, where shareholders approved all proposals, including the re-election of directors and financial statements. The AGM outcomes reflect shareholder confidence in the company’s management and strategic direction. These developments underscore the potential for Verona Pharma’s product, Ohtuvayre, to perform well in the COPD treatment market. The company’s progress and analyst support indicate a positive outlook for its future growth.
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