Verona Pharma price target raised to $160 from $76 at Piper Sandler

Investing.com - Piper Sandler raised its price target on Verona Pharma (NASDAQ:VRNA) stock to $160 from $76 on Monday while maintaining an Overweight rating on the shares. The company, now valued at $8.6 billion, has seen its stock surge over 528% in the past year, according to InvestingPro data.

The research firm cited continued success of OHTUVAYRE in chronic obstructive pulmonary disease (COPD) treatment as the primary reason for the significant price target increase. Piper Sandler noted strong investor interest following a recent dinner event focused on the drug.

OHTUVAYRE is expected to reach blockbuster status around 2027, according to Street expectations, with meaningful growth potential as it becomes further incorporated into the COPD treatment paradigm. The drug's dual bronchodilation and anti-inflammatory effects provide key advantages in COPD therapy.

Piper Sandler's analysis indicates that biologics remain complementary to OHTUVAYRE treatment, while the recent failure of itepekimab (IL-33) further validates OHTUVAYRE's broad therapeutic effect. The firm conducted a deep dive addressing 19 investor questions related to sales expectations, launch progression, value creation, and potential expansion into bronchiectasis.

Verona Pharma remains one of Piper Sandler's top picks for 2025, with the firm expressing bullishness based on strong launch execution and continued uptake of OHTUVAYRE in the COPD market.

In other recent news, Verona Pharma's Ohtuvayre has shown strong sales performance, with Jefferies reporting a significant increase to $71 million in the first quarter of 2025 from $37 million in the previous quarter. This robust trajectory led Jefferies to raise their price target for Verona Pharma to $110.00, maintaining a Buy rating. Meanwhile, Cantor Fitzgerald has maintained its Overweight rating and a price target of $100.00, noting the potential for Ohtuvayre to achieve over $400 million in sales by 2025. Piper Sandler also reiterated an Overweight rating with a $76.00 price target, highlighting Verona Pharma's strategic expansion of its sales force and direct-to-patient advertising efforts. Additionally, H.C. Wainwright increased their price target to $90.00, citing recent mixed trial results from competitors as potentially enhancing Verona Pharma's market position. Jefferies further emphasized Ohtuvayre's potential as a significant add-on therapy in the COPD market, with expectations of reaching between $3-5 billion in peak sales. The analysts noted that Ohtuvayre's sales show no signs of slowing down, and its broad utility across various patient profiles offers advantages over biologics. These developments suggest continued optimism from analysts about Verona Pharma's growth prospects.

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