Verona Pharma is developing first-in-class drugs that treat unmet medical needs in respiratory disease. RPL554 is being fast-tracked to commercialisation by focusing on a $3.2bn market segment poorly serviced by existing drugs. Key Phase II trial results are due to be announced in Q3 2015. There remains a significant mis-match between the current EV (£47m) and a potential inflection point on positive Phase II data in Q3 2015, when considering that median valuations for Phase II respiratory assets have headline valuations of $285m (£190m), or 19p per share.
