Vernalis is preparing for commercial launch of Tuzistra XR, its extended-release, codeine-based cough cold treatment following FDA approval in April. The product has greater commercial potential than previously anticipated with an addressable market of up to £1.8bn and is the only approved codeine-based, long-release liquid treatment. We forecast maiden cough cold sales in FY16 leading to profitability in FY18. We increase our valuation from £323m to £406m.
