Investment summary

Vernalis's £65.9m net equity raise and multi-product in-licensing of up to six novel late-stage ER cough/cold drugs for the US prescription market with Tris Pharma is a significant step in its strategy to become a diversified, profitable and sustainable speciality pharma company. While Vernalis has made clinical pipeline progress and balanced investment in research (adding Genentech and a third Servier deal to its collaborations in 2012), pipeline expansion via in-licensing was critical to its transformation strategy. The scope of the Tris deal and the size of the addressable market means Vernalis is one step closer to its goal.

Last updated on 23/04/2012

Industry outlook

The Tris deal provides Vernalis with a fast clinical and regulatory path into the large and valuable $2bn US prescription cough/cold market. First launch is potentially in 24-36 months. 2012 should also bring Phase I V18444 data (Parkinson's disease) and new trial starts for tosedostat (Phase II/III in AML/MDS) and V15886 (Phase II in pain), although the latter may be partnered first, as may V158411.

Last updated on 23/04/2012