Vernalis has completed investment in its NCE development pipeline following the results from its Phase II proof-of-concept trial of V158866 (neuropathic pain). The trial failed to meet its pain reduction primary endpoint but does not change our valuation on Vernalis. We look forward to the full commercial launch of the group’s lead cough cold product (TuzistraTM XR) later this year following its approval by the FDA on 30th April. We re-iterate our Buy recommendation and 93p target price.
