Vernalis (VER)

Business description

Vernalis is a UK speciality pharma company with an FDA-approved, prescription-only cough cold treatment, Tuzistra XR; an FDA approved amoxicillin, Moxatag; and a late-stage US cough cold pipeline of four products.

Stock data

Market cap.£16.9m
Last close3.20p
High / Low (52 weeks)25.8p / 3.2p
Stock market listingLN
Forecast net cash (£m)29.4
Forecast gearing ratio (%)N/A
SectorPharmaceutical & healthcare

Price performance

Relative *(48.7)(62)(86.7)

* % Relative to local index

Other companies in sector Show

4SC aap Implantate
Aastrom Biosciences AB Science
Abcam Abivax SA
Ablynx Abzena
Acarix Achillion Pharmaceuticals
Acorda Therapeutics Actinium Pharmaceuticals
Active Biotech Acucela
Addex Therapeutics Adherium
Advanced Medical Solutions Aegerion Pharmaceuticals
Aeterna Zentaris AFT Pharmaceuticals
Agennix Akari Therapeutics
Alchemia Alexza Pharmaceuticals
Algeta Alimera Sciences
ALK Abello Alkermes
Allergy Therapeutics Alliance Pharma
Allium Medical Solutions Alnylam Pharmaceuticals
Amarantus BioScience Amarin
Amplifon AmpliPhi Biosciences
Angle Animalcare Group
Anteo Diagnostics Anthera Pharmaceuticals
Aratana Therapeutics Ardea Biosciences
Ardelyx Arena Pharmaceuticals
arGEN-X Argos Therapeutics
Ariad Pharmaceuticals Arix Bioscience
Ark Therapeutics Group ArQule
Array BioPharma Arrowhead Research Corporation
Ascendis Pharma ASIT biotech
ASLAN Pharmaceuticals Astex Pharmaceuticals
Athersys Atossa Genetics
Avacta Group Avalanche Biotechnologies
AVEO Pharmaceuticals Avita Medical
Balda Basilea Pharmaceutica
Bavarian Nordic Bellus Health
Benitec Biopharma BioCryst Pharmaceuticals
BioInvent BioLight Life Sciences
BioLineRx BiondVax Pharmaceuticals
Bionomics Bionor Pharma
Biota Holdings Biotie Therapies Corp
Biotron Bluebird Bio
Bone Therapeutics Bonesupport
BrainStorm Cell Therapeutics BTG
C4X Discovery Holdings Can-Fite BioPharma
Cantargia Capstone Therapeutics
Carmat CASI Pharmaceuticals
Cell Therapy Celldex Therapeutics
Cellectis Cellular Biomedicine Group
Celyad Cerulean Pharma
Circadian Technologies Clal Biotechnology Industries
Clavis Pharma Cleveland BioLabs
Clinigen Group Clinuvel
CO.DON CollPlant Holdings
Consort Medical Corium International
Crescendo Crossject
CSL Curetis NV
Curis Cytori Therapeutics
Cytos Biotechnology CytRx Corporation
DBV Technologies Dechra Pharmaceuticals
Delcath Systems Deltex Medical
Derma Sciences DiaSorin
Diaxonhit e-Therapeutics
Egalet Corporation EKF Diagnostics
Elbit Medical Emergent BioSolutions
Endocyte Epigenomics
Erytech Pharma Esperion Therapeutics
Evotec Exact Sciences
Exelixis EyeGate Pharmaceuticals
Factor Therapeutics Formycon
Forward Pharma Fresenius SE & Co. KGaA
Futura Medical Galapagos
Galmed Pharmaceuticals Genedrive
Genfit Genkyotex
Genmab GeoVax
GI Dynamics Gilead Sciences
GNI Group Ltd GW Pharmaceuticals
Halozyme Therapeutics Heat Biologics Inc.
Heidelberg Pharma Horizon Discovery
Hutchison China MediTech Hybrigenics
iCo Therapeutics Idenix
Immune Pharmaceuticals Immunicum
Immunodiagnostic Systems Holdings Immunovia
ImmuPharma Immutep
Imprimis Pharmaceuticals Imugene
Incyte Corporation Infinity Pharmaceuticals
Innate Pharma Insmed
Intec Pharma International Stem Cell
Invion Ion Beam Applications
Ipsogen Iridex
Ironwood Pharmaceuticals Islet Sciences
Ixico Japan Tobacco
KaloBios Pharmaceuticals Kane Biotech
Karolinska Development Kazia Therapeutics
Keryx Biopharmaceuticals Kiadis Pharma
Laboratorios Farmacéuticos ROVI LCA-Vision
LeMaitre Vascular Lifeline Scientific
LifeWatch Ligand Pharmaceuticals
Lipocine Lombard Medical Technologies
MagForce Mast Therapeutics
Medcom Tech Medicago
MediciNova Medigene
Medivir Merrimack Pharmaceuticals
Merrion Pharmaceuticals Mesoblast
MethylGene MGC Pharmaceuticals
Midatech Pharma MISSION Therapeutics
Molecular Partners MolMed
Mologen Momenta Pharmaceuticals
MorphoSys Nanobiotix
Nanosonics Navidea Biopharmaceuticals
Nektar Therapeutics NeoStem
Neovacs NetScientific
NeuroVive Pharmaceutical Newron Pharmaceuticals
Nexstim NicOx
NMC Health NorDiag
Nordion NovaBay Pharmaceuticals
Novacyt NPS Pharmaceuticals
Nuevolution Ocata Therapeutics
Omega Diagnostics Group Omeros Corporation
OncoGenex Pharmaceuticals Oncology Venture
Oncolytics Biotech Inc OncoMed Pharmaceuticals
Onconova Therapeutics Oncothyreon
Onxeo Onyx Pharmaceuticals
Opexa Therapeutics OPMEDIC Group
Optos Orexigen Therapeutics
Orexo Orgenesis
Oryzon Genomics Ossur
OvaScience OWL
Oxford BioMedica Pacific Edge
Paion Paladin Labs
Patheon PDL BioPharma
Pharmacyclics PharmaMar
Pharmaxis Pharming Group
Photocure Phylogica
Pixium Vision Pluristem Therapeutics
Prescient Therapeutics Probiodrug
ProMetic Life Sciences Prosensa
Proteome Sciences PsiOxus
QRxPharma Quantum Genomics
Quantum Pharmaceuticals Race Oncology
RedHill Biopharma Regeneus
Relmada Therapeutics ReNeuron Group
Resverlogix REVA Medical
Rovi RXi Pharmaceuticals
Sangamo BioSciences Sarepta Therapeutics
Sartorius Scancell
Selvita Shire
Sierra Oncology Silence Therapeutics
Simavita Sinclair Pharma
Sirtex Medical Skyepharma
Smith & Nephew Sobi
Sosei Group Corporation Source Bioscience
SQI Diagnostics Stallergenes
StemCells Stentys
Stratec Biomedical Sucampo Pharmaceuticals
Sunesis Pharmaceuticals Surgical Innovations
Sygnis SymBio Pharmaceuticals
Synairgen Synergy Health
Synta Pharmaceuticals T‐cell cancer therapies
Targovax TearLab Corp
Tekmira Telix Pharmaceuticals
TESARO Theraclion
Therapix Biosciences Threshold Pharmaceuticals
ThromboGenics TiGenix
Tissue Regenix Tissue Therapies
Titan Pharmaceuticals Tonix Pharmaceuticals
Topotarget Touchstone Innovations
Transgene Trillium Therapeutics
Trimel Pharmaceuticals TruScreen Ltd
TxCell UCB
UDG Healthcare uniQure NV
Universal Biosensors VBI Vaccines
Vectura Verastem
Verisante Technology Verona Pharma
Vertex Pharmaceuticals Viralytics
ViroPharma Vivalis
Vivus VolitionRx
WaferGen Biosystems Xbrane Biopharma
Xencor Zafgen
Zealand Pharma Ziopharm Oncology

Company news

Y/E Jun Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 12.0 (23.9) (16.3) (3.4) N/A N/A
2017A 20.8 (23.3) (21.3) (3.6) N/A N/A
2018E 13.9 (34.0) (34.0) (6.3) N/A N/A
2019E 26.9 (28.7) (30.0) (5.4) N/A N/A

Last updated on 13/12/2017

Investment summary

Vernalis has provided a trading and operational update to its guidance for Tuzistra XR prescriptions for financial year-end 2018. Despite dynamic management of commercial initiatives, Tuzistra XR prescription growth is not accelerating fast enough to meet Vernalis’s guidance of 105-115k prescriptions (given at the FY17 results). Following a disappointing uptake in the current cough cold season (~65% of the season is complete), Vernalis is downgrading guidance on prescription numbers and, in light of slow progress in the US cough and flu business, is seeking alternative strategies for the US business and the group. As such, we place our financial forecasts and valuation under review until we receive clarity on strategic next steps and the potential impact on cash burn, given a cash balance of £44m (unaudited at 31 January 2018).

Last updated on 28/02/2018

Industry outlook

Generic IR liquid products dominate the US Rx cough cold market, reflecting difficulties in formulating ER liquids that satisfy current FDA regulations; Tuzistra XR meets these standards. Favourable pricing and reimbursement of the five cough cold products in development by Vernalis would value the addressable market at up to $3.5bn.

Last updated on 02/02/2018

Key management

Peter Fellner, Chairman
Ian Garland, CEO
David Mackney, CFO

Company address

100 Berkshire Place
Wharfedale Road
RG41 5RD
United Kingdom
0118 938 0000
View website