How about apologies to me for reminding me of that one ? :-)
Going to do it myself (it's now a significant holding for me), but noticed you beat me to it by nearly a year.
Results decent, though -
LONDON, Sept 17 (Reuters) - Losses at Vernalis Group (VER.L: Quote, Profile, Research) almost halved in the first-half, its cash position improved and the UK biotechnology firm said it sees signficant growth potential for its pipeline of experimental drugs.
Vernalis also confirmed that Swiss drug-maker Novartis (NOVN.VX: Quote, Profile, Research) will provide funding over three years for its lead cancer research programme, and will conduct all clinical trials necessary to bring its cancer drug candidates to market.
The worldwide licensing agreement was announced in August.
However, its biggest money-spinner will be the migraine treatment Frova, to which it holds the North American rights, Chief Executive Simon Struge told Reuters.
The drug is currently in Phase III trials to extend its use as a preventive treatment for menstrually related migraine. This could potentially increase sales 10-fold to around $500 million a year, Sturge said.
"There is no other prophylactic treatment for women who suffer from migraines triggered by menstruation," he said.
Unlike conventional migraine treatments, Frova could be taken before the onset of menstruation and the effects last up to 26 hours, compared to the current 2-3 hours, Sturge said.
At 0743 GMT Vernalis shares were up 2.5 percent at 91-1/2 pence, valuing the company at around 130 million pounds.
Losses fell to 13.1 million pounds ($23.4 million) in the six months to end-June from 26 million last year.
Cash and short-term investments at the start of the second half stood at 37.2 million pounds versus 11 million pounds in June, following the receipt of payments from collaborative agreements with Endo Pharmaceuticals (ENDP.O: Quote, Profile, Research) to market Frova in the United States and Biogen Idec (BIIB.O: Quote, Profile, Research) to develop and commercialise its treatment for Parkinson's Disease.
A further 6 million pounds is due from Novartis this month.
Should Frova obtain approval from the U.S. Food and Drug Administration for Frova's use for menstrually related migraine, Vernalis will get a $40 million milestone payment from Endo.
"With that, we wouldn't need to raise more cash, it would see the company through to profitability," Sturge said.
Present cash reserves would last around three years.
Brokerage Nomura, which has a "buy" rating on the stock, said the impact of Frovo sales should become apparent in the last quarter of 2004.
"We are more than comfortable that the company can meet our full year forecast of 11.3 million pounds revenue and a gross cash balance of 28.7 million pounds," analyst Sam Fazeli wrote in a research note. |
