David R. Ebsworth, a director at Verona Pharma plc (NASDAQ:VRNA), has acquired 39,360 ordinary shares of the company, according to a recent SEC filing. The shares were purchased at a price of $4.7988 each, totaling approximately $188,880. Following this transaction, Ebsworth holds a total of 920,003 ordinary shares, represented by both American Depositary Shares (ADSs) and ordinary shares of the company. Each ADS represents eight ordinary shares of Verona Pharma.
In other recent news, Verona Pharma disclosed robust third-quarter financial results, with top-line revenue reaching $5.6 million, surpassing Wall Street's highest estimate of $3.5 million. This revenue was entirely generated from sales of Ohtuvayre, the company's sole marketed product for treating chronic obstructive pulmonary disease (COPD). Following these results, H.C. Wainwright maintained a Buy rating on Verona Pharma shares and raised the price target to $42.00 from $36.00. The company also reported a net loss of $43 million for the quarter but emphasized the successful launch of Ohtuvayre in the U.S., with net product sales of $5.6 million within the first seven weeks post-launch.
In addition to the earnings report, Verona Pharma revealed that October 2024 sales of Ohtuvayre exceeded the entire third-quarter sales, indicating significant growth. H.C. Wainwright has increased its 2024 revenue forecast for Verona to $22.5 million, up from the earlier projection of $12.5 million. Verona Pharma has been assigned a unique J-code for Ohtuvayre, J7601, which is expected to come into effect in January 2025, potentially aiding in the market uptake of the drug.
In recent developments, a permanent J-code for Ohtuvayre has been approved by CMS, effective January 2025. The company plans to provide detailed revenue guidance in early 2025. Verona Pharma is also focusing on increasing interactions with Tier 1 and Tier 2 physicians to improve prescribing behavior. Despite the net loss for Q3, the company remains optimistic about continued sales growth and the drug's broad prescription base.
InvestingPro Insights
The recent insider purchase by David R. Ebsworth aligns with several positive indicators for Verona Pharma plc (NASDAQ:VRNA). According to InvestingPro data, the company has experienced remarkable growth, with revenue increasing by an impressive 1127.95% in the last twelve months as of Q3 2024. This substantial growth is reflected in the stock's performance, with a 160.61% price return over the past year.
InvestingPro Tips highlight that five analysts have revised their earnings upwards for the upcoming period, suggesting growing confidence in the company's prospects. Additionally, Verona Pharma boasts impressive gross profit margins, which stand at 90.34% for the last twelve months as of Q3 2024. This high margin indicates strong pricing power and efficient cost management.
However, investors should note that the company is not currently profitable, with a negative operating income of $151.3 million in the same period. The stock is also trading near its 52-week high, with its price at 96.91% of the highest point in the past year. This could indicate that the stock might be in overbought territory, as another InvestingPro Tip suggests.
For those interested in a more comprehensive analysis, InvestingPro offers 14 additional tips for Verona Pharma, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.