TIDMVRP
Reported positive Phase 2b results in symptomatic patients with moderate
to severe COPD with nebulized ensifentrine
Reported positive efficacy and safety with single dose pMDI ensifentrine
U.S. FDA response to End-of-Phase 2 package expected in the second
quarter
Conference Call Today at 9:00 am EDT / 2:00 pm BST
LONDON, April 30, 2020 (GLOBE NEWSWIRE) -- Verona Pharma plc (AIM: VRP)
(Nasdaq: VRNA) ("Verona Pharma" or the "Company"), a clinical-stage
biopharmaceutical company focused on developing and commercializing
innovative therapies for respiratory diseases, announces financial
results for the three months ended March 31, 2020, and provides a
corporate update.
OUTLOOK AND STRATEGY
Verona Pharma aims to improve health and quality of life for the
millions of people affected by chronic respiratory diseases. The
Company's first-in-class development candidate, ensifentrine, has the
potential to provide relief for patients suffering from respiratory
conditions such as chronic obstructive pulmonary disease ("COPD"),
cystic fibrosis ("CF") and asthma.
Ensifentrine is a novel, investigational inhaled therapy that has been
shown to act as both a bronchodilator and an anti-inflammatory agent in
one compound. Initially, the Company is advancing the development of
nebulized ensifentrine for the maintenance treatment of COPD in moderate
to severe patients.
The Company's key objectives include:
-- Completing an End-of-Phase 2 meeting with the U.S. Food and Drug
Administration ("FDA") in the second quarter of 2020 to receive guidance
on the design of the Phase 3 program with nebulized ensifentrine;
-- Securing sufficient capital to fund the Phase 3 program for nebulized
ensifentrine; and
-- Initiating the Phase 3 program with nebulized ensifentrine in moderate to
severe COPD patients.
RECENT CORPORATE DEVELOPMENTS
Clinical
-- In January 2020, the Company reported positive top-line data from a Phase
2b clinical study with nebulized ensifentrine added on to tiotropium
(Spiriva(R)), a long acting anti-muscarinic ("LAMA") bronchodilator in
symptomatic patients with moderate to severe COPD. The study met the
primary endpoint at all doses and also met clinically relevant secondary
endpoints. The Company believes these data support dose selection for
Phase 3 clinical trials. The study was accepted as a late-breaking
abstract at the 2020 American Thoracic Society International Conference.
-- In March 2020, the Company reported positive efficacy and safety data
with a single dose of the pressurized metered-dose inhaler ("pMDI")
formulation of ensifentrine in a Phase 2 clinical trial in patients with
moderate to severe COPD. With these results and those observed in
previous Phase 2 clinical trials, ensifentrine has demonstrated
statistically significant and clinically meaningful improvements in lung
function in COPD patients when delivered via any of the three widely used
inhaled modes: nebulizer, DPI and pMDI.
-- Results from the single dose part of the study (Part A) demonstrated a
statistically significant and clinically meaningful increase in lung
function as measured by ("FEV1")1 compared to placebo.
-- Positive data support initiation of the second, multiple dose, part of
the study (Part B), which will evaluate the pMDI formulation in this
patient population over 7 days of twice-daily treatment. Verona Pharma
has postponed the initiation of Part B due to concerns regarding the
safety of trial subjects, caregivers and medical staff during the novel
coronavirus (COVID-19) pandemic. As a result the Company does not expect
to announce results from Part B of this trial in 2020. The Company will
continue to monitor this evolving situation and will provide an updated
timeline for the initiation of Part B at a later date.
-- Also during the first quarter of 2020, the Company requested an
End-of-Phase 2 meeting with the FDA. As a result of the COVID-19 pandemic,
the FDA has advised that it will provide a written response to the
Company on its End-of-Phase 2 package, rather than holding a meeting. The
Company is expecting to receive this response during the second quarter
of 2020.
-- Based on the positive Phase 2 data and subject to receiving the FDA's
response to the End-of-Phase 2 package, the Company plans to seek the
necessary funding and initiate the Phase 3 clinical program.
-- Additionally, in February 2020, the Company published its Phase 2b
clinical results with nebulized ensifentrine as a monotherapy for
maintenance treatment of COPD in the peer reviewed journal, Respiratory
Research. The 403-patient trial, which was reported in March 2018, met
its primary endpoint demonstrating that ensifentrine produced clinically
and statistically significant improvements in lung function at all doses.
In addition, clinically relevant secondary endpoints were met including
significant progressive improvements in COPD symptoms.
Management
-- In February 2020, the Company appointed Dr. David Zaccardelli as
President and Chief Executive Officer and as an executive director. Mark
Hahn, was appointed as Chief Financial Officer in March.
FINANCIAL HIGHLIGHTS
-- Net cash, cash equivalents and short-term investments at March 31, 2020
amounted to GBP20.8 million (December 31, 2019: GBP30.8 million). In
April 2020 the Company received a fiscal 2019 tax credit of GBP7.3
million in cash.
-- For the three months ended March 31, 2020, the Company reported operating
loss of GBP11.2 million (three months ended March 31, 2019: GBP7.8
million) and reported loss after tax of GBP9.6 million (three months
ended March 31, 2019: GBP5.4 million).
-- The increase in operating costs was predominantly due to increased
general and administrative expenses, which were driven primarily by costs
relating to executive changes and costs associated with the closure of
our New York office and relocation of our US base of operations to North
Carolina. Included in net profit and partly offsetting the rise in
operating loss is a fall in the net amount of finance income and expense
of GBP0.7 million.
-- Reported loss per share was 9.1 pence for the three months ended March
31, 2020 (three months ended March 31, 2019: 5.1 pence).
-- Net cash used in operating activities for the three months ended March
31, 2020 was GBP10.1 million (three months ended March 31, 2019: GBP9.9
million).
"We continue to execute on the clinical development plan for
ensifentrine in COPD for both nebulizer and handheld inhaler
formulations. We recently reported significant improvements in lung
function and a continued favorable safety profile demonstrated by the
single dose Phase 2 results with the pMDI formulation of ensifentrine,"
said David Zaccardelli, Pharm. D., President and Chief Executive
Officer. "With these results and those observed in previous Phase 2
clinical trials, ensifentrine has demonstrated statistically significant
and clinically meaningful improvements in lung function in COPD patients
when delivered via any of the three widely used inhaled modes: nebulizer,
DPI and pMDI. In addition to positive effects of ensifentrine on lung
function, we are very encouraged by the promising data on COPD symptoms
and quality of life seen in Phase 2 studies."
"We look forward to the FDA's response to our End-of-Phase 2 package,
which is expected in the second quarter of 2020. Currently, the
initiation of a Phase 3 program for ensifentrine for the treatment of
COPD is anticipated later this year, subject to securing additional
funding. We continue to monitor the situation caused by the COVID-19
pandemic and its potential impact on our operational and financing goals
and will provide an update as and when further information becomes
available."
COVID-19 IMPACT AND BUSINESS CONTINUITY
To help protect the health and safety of the patients, caregivers and
healthcare professionals involved in its ongoing clinical trials of
ensifentrine, as well as its employees and independent contractors, in
response to the COVID-19 pandemic, Verona Pharma has implemented a
number of precautionary clinical and operational measures to ensure
consistent and appropriate clinical trial conduct. The Company continues
to review the effect of the COVID-19 pandemic on its operations, ongoing
and planned clinical trials and the potential disruption to financial
markets.
Ongoing and Planned Clinical Trials of Ensifentrine and Interactions
with Regulators
Verona Pharma's ongoing clinical trial evaluating the pMDI formulation
of ensifentrine in patients with moderate to severe COPD has met
previously disclosed timelines for reporting data from the single-dose
portion (Part A), and the Company previously reported that it
anticipated reporting results from the multiple-dose portion (Part B) in
the second half of 2020. In March 2020, the Company announced it has
postponed the initiation of Part B due to concerns regarding the safety
of trial subjects, caregivers and medical staff during the COVID-19
pandemic. As a result the Company does not expect to announce results
from Part B of this trial in 2020. The Company will continue to monitor
this evolving situation and will provide an updated timeline for the
start of Part B at a later date.
Verona Pharma is expecting to receive in the second quarter of 2020 a
response from the FDA to its End-of-Phase 2 package. The Company
anticipates that this response will inform the design of the planned
Phase 3 program with nebulized ensifentrine.
Verona Pharma has previously reported that it anticipates initiating the
Phase 3 program in the third quarter of 2020. The Company is continuing
its preparations to initiate the Phase 3 program as soon as possible
following a response from the FDA to its End-of-Phase 2 package, which
supports proceeding with Phase 3 and subject to securing sufficient
capital to fund the program and the status of the COVID-19 pandemic at
that time. The Company is investigating the potential impact of the
COVID-19 pandemic on the program, including the planned design, cost and
timelines and is evaluating potential mitigations including
pre-enrollment COVID-19 screening among others. The Company plans to
provide an update on these details as and when further information is
available.
Verona Pharma is investigating whether the COVID-19 pandemic may cause
disruption of clinical supply of ensifentrine for the ongoing trial of
the pMDI formulation or planned Phase 3 clinical trials of the nebulized
formulation. The Company's contract manufacturers have indicated that
they have appropriate plans and procedures in place to ensure
uninterrupted future supply of clinical ensifentrine, subject to
potential limitations on their operations and on the supply chain due to
the COVID-19 pandemic. The Company is continuing to monitor this
situation and will provide an update if it becomes aware of any
disruption caused by the pandemic to the clinical supply of ensifentrine
for ongoing and planned clinical trials.
Corporate Operations and Financial Impact
Verona Pharma has also implemented measures to help keep the Company's
employees, families, and local communities healthy and safe. All
employees are working remotely and all business travel has been
restricted.
The COVID-19 pandemic has caused significant disruption to the financial
markets. Verona Pharma has previously indicated that a key 2020 goal is
to raise significant additional funding to initiate and complete the
Phase 3 program. The Company is continuing to evaluate available sources
of capital, however, the cost and other terms of such capital have
become more onerous as a result of the impacts of the COVID-19 pandemic
on the financial markets. There is no guarantee that the Company will be
successful in securing additional financing on acceptable terms or
within its planned timeframe, or at all, and should it be unable to
raise sufficient additional funds it will be required to defer the
initiation of Phase 3 clinical trials and other development activities,
until such funding can be obtained.
COVID-19 risk factor
Verona Pharma has assessed the potential impact on its business of the
COVID-19 pandemic and will be updating its risk factor disclosures on a
Report on Form 6-K to be filed with the SEC on or about April 30, 2020.
The Company is continuing to review the effect of the COVID-19 pandemic
on its operations, ongoing and planned clinical trials and the potential
disruption to financial markets.
(1) FEV(1) Forced Expiratory Volume in one second, a standard measure of
lung function
Conference Call and Webcast Information
Verona Pharma will host an investment community conference call at 9:00
a.m. EDT / 2:00 p.m. BST on Thursday, April 30, 2020 to discuss the Q1
2020 financial results and the corporate update.
Analysts and investors may participate by dialing one of the following
numbers and reference conference ID: 2667888:
-- 866-940-4574 for callers in the United States
-- 0800 028 8438 for callers in the United Kingdom
-- 0800 181 5287 for callers in Germany
A live webcast will be available on the Events and Presentations link on
the Investors page of the Company's website, www.veronapharma.com, and
an audio replay will be available there for 30 days. An electronic copy
of the Q1 2020 results release will also be made available today on the
Company's website. This press release does not constitute an offer to
sell or the solicitation of an offer to buy any of the Company's
securities, and shall not constitute an offer, solicitation or sale in
any jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities
laws of that jurisdiction.
This press release contains inside information for the purposes of
Article 7 Regulation (EU) No. 596/2014.
About Verona Pharma plc
Verona Pharma is a clinical-stage biopharmaceutical company focused on
developing and commercializing innovative therapies for the treatment of
respiratory diseases with significant unmet medical needs. If
successfully developed and approved, Verona Pharma's product candidate,
ensifentrine, has the potential to be the first therapy for the
treatment of respiratory diseases that combines bronchodilator and
anti-inflammatory activities in one compound. Verona Pharma is currently
in Phase 2 development with three formulations of ensifentrine for the
treatment of COPD: nebulized, dry powder inhaler and pressurized
metered-dose inhaler. Ensifentrine also has potential applications in
cystic fibrosis, asthma and other respiratory diseases. For more
information, please visit www.veronapharma.com.
Forward Looking Statements
This press release, operational review, outlook and financial review
contain forward-looking statements. All statements contained in this
press release, operational review, outlook and financial review that do
not relate to matters of historical fact should be considered
forward-looking statements, including, but not limited to, statements
regarding the development and potential of ensifentrine, the initiation,
progress and timing of clinical trials, our expectations surrounding
clinical trial results and responses from the FDA, the market
opportunity for various formulations of ensifentrine, including
estimates of the market size for COPD, the impact of the novel
coronavirus COVID-19 pandemic on our business and operations and the
Company's future financial results, the sufficiency of our cash and cash
equivalents, and our expectations surrounding additional funding.
These forward-looking statements are based on management's current
expectations. These statements are neither promises nor guarantees, but
involve known and unknown risks, uncertainties and other important
factors that may cause our actual results, performance or achievements
to be materially different from our expectations expressed or implied by
the forward-looking statements, including, but not limited to, the
following: our limited operating history; our need for additional
funding to complete development and commercialization of ensifentrine,
which may not be available and which may force us to delay, reduce or
eliminate our development or commercialization efforts; the reliance of
our business on the success of ensifentrine, our only product candidate
under development; economic, political, regulatory and other risks
involved with international operations; the lengthy and expensive
process of clinical drug development, which has an uncertain outcome;
serious adverse, undesirable or unacceptable side effects associated
with ensifentrine, which could adversely affect our ability to develop
or commercialize ensifentrine; potential delays in enrolling patients,
which could adversely affect our research and development efforts; we
may not be successful in developing ensifentrine for multiple
indications; our ability to obtain approval for and commercialize
ensifentrine in multiple major pharmaceutical markets; misconduct or
other improper activities by our employees, consultants, principal
investigators, and third-party service providers; the loss of any key
personnel and our ability to recruit replacement personnel, as well as
the impact of our management team transition; material differences
between our "top-line" data and final data; our reliance on third
parties, including clinical investigators, manufacturers and suppliers,
and the risks related to these parties' ability to successfully develop
and commercialize ensifentrine; lawsuits related to patents covering
ensifentrine and the potential for our patents to be found invalid or
unenforceable; the impact of the novel coronavirus COVID-19 pandemic on
our operations, the continuity of our business and general economic
conditions; and our vulnerability to natural disasters, global economic
factors and other unexpected events, including health epidemics or
pandemics like COVID-19.
These and other important factors under the caption "Risk Factors" in
our Annual Report on Form 20-F filed with the Securities and Exchange
Commission ("SEC") on February 27, 2020, under the caption "Supplemental
Risk Factor Disclosures" in our Report on Form 6-K to be filed with the
SEC on or about April 30, 2020, and our other reports filed with the SEC,
could cause actual results to differ materially from those indicated by
the forward-looking statements made in this press release, operational
review, outlook and financial review. Any such forward-looking
statements represent management's estimates as of the date of this press
release and operational and financial review. While we may elect to
update such forward-looking statements at some point in the future, we
disclaim any obligation to do so, even if subsequent events cause our
views to change. These forward-looking statements should not be relied
upon as representing our views as of any date subsequent to the date of
this press release, operational review, outlook and financial review.
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF
ARTICLE 7 OF REGULATION (EU) NO 596/2014
For further information please contact:
Verona Pharma plc Tel: +44 (0)20 3283 4200
Victoria Stewart, Director of Communications info@veronapharma.com
N+1 Singer Tel: +44 (0)20 3283 4200
(Nominated Adviser and UK Broker)
Aubrey Powell / George Tzimas / Iqra Amin (Corporate
Finance)
Tom Salvesen (Corporate Broking)
Optimum Strategic Communications Tel: +44 (0)20 950 9144
(European Media and Investor Enquiries) verona@optimumcomms.com
Mary Clark / Eva Haas / Hollie Vile
Argot Partners Tel: +1 212-600-1902
(US Investor Enquiries) verona@argotpartners.com
Stephanie Marks / Kimberly Minarovich / Michael
Barron
OPERATIONAL REVIEW
Company overview
Verona Pharma is focused on the development of our novel, late-stage
candidate, ensifentrine, for the treatment of unmet respiratory needs.
This inhaled inhibitor of the enzymes phosphodiesterase 3 and 4 ("PDE3"
and "PDE4") is in Phase 2 clinical development with three formulations
of ensifentrine for the treatment of chronic obstructive pulmonary
disease ("COPD"): nebulized, dry powder inhaler ("DPI") and pressurized
metered-dose inhaler ("pMDI"). Ensifentrine has demonstrated significant
and clinically meaningful improvements in lung function in COPD patients
when delivered via any of these formulations. Ensifentrine also has
potential applications in cystic fibrosis, asthma and other respiratory
diseases.
Ensifentrine highlights:
-- First-in-class dual bronchodilator and anti-inflammatory agent in a
single molecule
-- Potentially the first novel class of bronchodilator in COPD in over 40
years
-- Potentially the only bronchodilator option as an add-on to existing dual
/ triple therapy
COPD is a progressive respiratory disease without a cure. It damages the
airways and lungs, leading to debilitating breathlessness,
hospitalizations and death. COPD has a major impact on everyday life.
Patients struggle with basic activities such as getting out of bed,
showering and walking. COPD affects approximately 384 million people
worldwide. It is projected to be the third leading cause of death
globally by 2030, according to the World Health Organization.
COPD patients are frequently treated with bronchodilators, to relieve
airway constriction and make it easier to breathe, and with
corticosteroids, to reduce lung inflammation. Despite receiving maximum
therapy, many patients, more than 1.2 million in the US alone, remain
symptomatic and urgently need additional treatment. We believe that
ensifentrine can provide significant benefits for these patients.
Initially, we are developing nebulized ensifentrine for the maintenance
treatment of moderate to severe COPD patients. During the first quarter
we made significant clinical progress, reporting positive data from our
second four-week Phase 2b clinical trial with nebulized ensifentrine in
over 400 symptomatic COPD patients. In this trial, ensifentrine
demonstrated that it provides additional bronchodilation when given in
addition to tiotropium (Spiriva(R) ), a long acting anti-muscarinic
antagonist ("LAMA") widely used for the treatment of COPD. Our first
4-week Phase 2b clinical trial in over 400 COPD patients, which was
reported in March 2018, also demonstrated improvements in
bronchodilation and COPD symptoms with nebulized ensifentrine as
monotherapy.
Summary of Phase 2b clinical results in moderate to severe COPD
patients:
-- Statistically significant and clinically meaningful improvements in lung
function
-- Statistically significant improvements in symptoms and Quality of Life
measures
-- Improvements as monotherapy or as an addition to background therapy
-- Well-tolerated in 15 clinical trials in over 1300 subjects
Also during the first quarter of 2020, we requested an End-of-Phase 2
meeting with the FDA. The FDA has advised that it will provide a written
response to the Company about its End-of Phase 2 package, rather than
holding a meeting. We expect to receive this response during the second
quarter of 2020. The U.S. regulatory pathway for the development of
nebulized treatments for COPD is well-established and nebulized
therapies currently attract a premium price in this substantial market.
Our DPI and pMDI formulations of ensifentrine have also demonstrated
positive efficacy and safety data in Phase 2 clinical trials in moderate
to severe COPD. An estimated 5.5 million people in the US use inhaled
delivery, or DPI formulations delivered via handheld inhalers, for COPD
maintenance treatment. The availability of these formulations of
ensifentrine, if successfully developed and approved, creates new
opportunities for using ensifentrine with existing inhaled medications.
US sales of inhaled COPD maintenance medication were approximately $9
billion in 2019.
Management update
Senior executive changes bring substantial leadership, operational and
clinical expertise.
In February 2020, Verona Pharma appointed Dr. David Zaccardelli as
President and Chief Executive Officer and executive director.
In March 2020, Verona Pharma appointed Mark Hahn as Chief Financial
Officer.
FINANCIAL REVIEW
Financial review of the three month period ended March 31, 2020
The operating loss for the three months ended March 31, 2020, was
GBP11.2 million (March 31, 2019: GBP7.8 million) and the loss after tax
for the three months ended March 31, 2020, was GBP9.6 million (March 31,
2019: GBP5.4 million).
Research and development costs
Research and development costs were GBP5.9 million for the three months
ended March 31, 2020, compared to GBP5.9 million for the three months
ended March 31, 2019. In the three months ended March 31, 2020, these
costs included preparatory costs for our planned Phase 3 program, the
close down costs for the Phase 2b study for nebulized ensifentrine added
on to tiotropium and related drug product manufacturing costs.
In the same period in 2019 this included the cost for the Phase 2 trial
using the dry powder inhaler formulation, costs for the Phase 2b study
for nebulized ensifentrine added on to tiotropium and related drug
product manufacturing costs. In addition there were preparatory costs
for the dose-ranging Phase 2b study for ensifentrine added on to
tiotropium.
General and administrative costs
General and administrative costs were GBP5.3 million for the three
months ended March 31, 2020, compared to GBP1.8 million for the three
months ended March 31, 2019, an increase of GBP3.5 million. The increase
was primarily attributable to a GBP2.7 million increase in costs
relating to executive changes and costs associated with the closure of
our New York office and relocation of our US base of operations to North
Carolina. We booked costs of GBP1.7 million relating to payments with
respect to contractual notice periods and other severance costs. There
was a GBP0.2 million impairment relating to the closure of the New York
office and an increase in the share based payment charge of GBP0.8
million for Restricted Stock Units issued to new executive officers and
accelerated charges relating to severance agreements. In addition there
was a GBP0.3 million increase in foreign exchange charges relating to
movements in the GBP/USD exchange rate. Finally, recruitment costs,
Directors and Officers liability insurance and various other costs
increased by an aggregate of GBP0.5m.
Finance income and expense
Finance income was GBP0.4 million for the three months ended March 31,
2020, and GBP1.9 million for the three months ended March 31, 2019. The
decrease in finance income was primarily due to a smaller decrease in
the fair value of the warrant liability of GBP0.1 million during the
three months ended March 31, 2020 compared to a decrease of GBP1.6
million in the warrant liability during the three months ended March 31,
2019.
Finance expense was GBP0.1 million for the three months ended March 31,
2020, compared to GBP0.8 million for the three months ended March 31,
2019. The decrease was due to no foreign exchange loss on cash and short
term investments for the 2020 period compared to a GBP0.8 million loss
for the three months ended March 31, 2019.
Taxation
Taxation for the three months ended March 31, 2020, amounted to a credit
of GBP1.3 million compared to a credit of GBP1.3 million for the three
months ended March 31, 2019. The credits are obtained at a rate of 14.5%
of 230% of our qualifying research and development expenditure. Similar
expenditure on research and development has resulted in approximately
the same tax credit year on year.
Cash flows
Net cash used in operating activities increased to GBP10.1 million for
the three months ended March 31, 2020, from GBP9.9 million for the three
months ended March 31, 2019. Operating costs in the three months ended
March 31, 2020, were higher than in the prior period but there was a
similar cash outflow due to the timing of supplier payments and a number
of accrued and non-cash severance costs in 2020.
Net cash generated from investing activities predominantly reflects the
net movement of cash being placed on deposit for more than three months
and such deposits maturing, because deposits of more than three months
are disclosed as short term investments, separately from cash. The
decrease in net cash generated in investing activities to GBP7.2 million
for the three months ended March 31, 2020, from GBP9.0 million for the
three months ended March 31, 2019, was due to the net movement of funds
from short term investments to cash being less during the three months
ended March 31, 2020.
Cash, cash equivalents and short-term investments
Cash, cash equivalents and short-term investments at March 31, 2020
decreased to GBP20.8 million from GBP30.8 million at December 31, 2019
due to the utilization of cash in the Company's ordinary operating
activities.
The Group intends to initiate its Phase 3 program for the maintenance
treatment of COPD once it believes it has alignment with the U.S. Food
and Drug Administration ("FDA") on its planned design for the Phase 3
clinical program. The Group will require significant additional funding
to initiate and complete this Phase 3 program and will need to secure
the required capital to fund the program. The Group intends to seek
additional funding through public or private financings, debt financing,
collaboration or licensing agreements and other arrangements. However,
there is no guarantee that the Group will be successful in securing
additional finance on acceptable terms, or at all, and should the Group
be unable to raise sufficient additional funds it will be required to
defer the initiation of Phase 3 clinical trials and other development
activities, until such funding can be obtained. This could also force
the Group to delay, reduce or eliminate some or all of its research and
development programs, product portfolio expansion or commercialization
efforts, or pursue alternative development strategies that differ
significantly from its current strategy, which could have a material
adverse effect on the Group's business, results of operations and
financial condition.
Additionally the ongoing COVID-19 pandemic could impact the Group's
ability to initiate its planned Phase 3 development program and could
cause further disruption to capital markets, either of which could
adversely affect Group's ability to raise the necessary capital.
Net assets
Net assets decreased to GBP25.8 million in the three month period ended
March 31, 2020, from GBP33.9 million at December 31, 2019. This decrease
was primarily due to the operating activities of the Company.
VERONA PHARMA PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION
AS OF MARCH 31, 2020 AND DECEMBER 31, 2019 (UNAUDITED)
As of As of
Notes March 31, 2020 December 31, 2019
--------------- --------------------
GBP'000s GBP'000s
ASSETS
Non-current assets:
Goodwill 441 441
Intangible assets 2,772 2,757
Property, plant and
equipment 42 43
Right-of-use assets 9 1,210 971
Total non-current assets 4,465 4,212
-------------- ----------------
Current assets:
Prepayments and other
receivables 1,972 2,770
Current tax receivable 8,667 7,396
Short term investments 10 700 7,823
Cash and cash
equivalents 20,059 22,934
Total current assets 31,398 40,923
-------------- ----------------
Total assets 35,863 45,135
============== ================
EQUITY AND LIABILITIES
Capital and reserves
attributable to equity
holders:
Share capital 5,311 5,266
Share premium 118,862 118,862
Share-based payment
reserve 11,811 10,364
Accumulated loss (110,160) (100,627)
-------------- ----------------
Total equity 25,824 33,865
-------------- ----------------
Current liabilities:
Derivative financial
instrument 11 783 895
Lease liabilities 623 460
Trade and other payables 6,619 8,261
Total current
liabilities 8,025 9,616
-------------- ----------------
Non-current liabilities:
Assumed contingent
obligation 12 1,156 1,103
Non-current Lease
Liability 809 491
Deferred income 49 60
----------------
Total non-current
liabilities 2,014 1,654
-------------- ----------------
Total equity and
liabilities 35,863 45,135
============== ================
The accompanying notes form an integral part of these consolidated
financial statements.
VERONA PHARMA PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
FOR THE THREE MONTHSED MARCH 31, 2020 AND MARCH 31, 2019 (UNAUDITED)
Three Months Three Months
Ended Ended
Notes March 31, 2020 March 31, 2019
----------------- -----------------
GBP'000s GBP'000s
Research and development costs (5,872) (5,928)
General and administrative costs (5,301) (1,831)
---------- ---- --------- -----
Operating loss (11,173) (7,759)
Finance income 6 391 1,860
Finance expense 6 (52) (820)
---------- ---- --------- -----
Loss before taxation (10,834) (6,719)
Taxation -- credit 7 1,261 1,313
---------- ----- --------- ------
Loss for the period (9,573) (5,406)
Other comprehensive loss:
Items that might be subsequently reclassified to profit
or loss
----------------- -----------------
Exchange differences on translating foreign operations 40 (13)
---------- ----- --------- -----
Total comprehensive loss attributable to owners of
the Company (9,533) (5,419)
========== ==== ========= =====
Loss per ordinary share -- basic and diluted (pence) 8 (9.1) (5.1)
The accompanying notes form an integral part of these consolidated
financial statements.
VERONA PHARMA PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
FOR THE THREE MONTHSED MARCH 31, 2019, AND MARCH 31, 2020
(UNAUDITED)
Total
Share Share Share-based Accumulated Total
Capital Premium Expenses Losses Equity
-------- -------- ----------- -------------- ----------
GBP'000s GBP'000s GBP'000s GBP'000s GBP'000s
Balance at
January 1,
2019 5,266 118,862 7,923 (68,633) 63,418
Impact of
change in
accounting
policy (1) -- -- -- (20) (20)
Adjusted
Balance at
January 1,
2019 5,266 118,862 7,923 (68,653) 63,398
-------- -------- ----------- --------- -------
Loss for the
period -- -- -- (5,406) (5,406)
Other
comprehensive
loss for the
period:
Exchange
differences
on
translating
foreign
operations -- -- -- (13) (13)
-------- -------- ----------- --------- -------
Total
comprehensive
loss for the
period -- -- -- (5,419) (5,419)
Share-based
payments -- -- 620 -- 620
-------- -------- ----------- --------- --- -------
Balance at
March 31,
2019 5,266 118,862 8,543 (74,072) 58,599
======== ======== =========== ========= =======
Balance at
January 1,
2020 5,266 118,862 10,364 (100,627) 33,865
-------- -------- ----------- --------- -------
Loss for the
period -- -- -- (9,573) (9,573)
Other
comprehensive
loss for the
period:
Exchange
differences
on
translating
foreign
operations -- -- -- 40 40
-------- -------- ----------- --------- --- -------
Total
comprehensive
loss for the
period -- -- -- (9,533) (9,533)
New share
capital
issued 45 -- -- -- 45
Share-based
payments -- -- 1,447 -- 1,447
-------- -------- ----------- --------- --- -------
Balance at
March 31,
2020 5,311 118,862 11,811 (110,160) 25,824
======== ======== =========== ========= =======
The currency translation reserve for March 31, 2019, and March 31, 2020,
is not considered material and as such is not presented in a separate
reserve but is included in the total accumulated losses reserve.
(1) This relates to the adoption of IFRS 16. See note 2.17 of the 20-F
2019.
VERONA PHARMA PLC
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
FOR THE THREE MONTHSED MARCH 31, 2020 AND MARCH 31, 2019 (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2020 March 31, 2019
----------------- -----------------
GBP'000s GBP'000s
Cash used in operating activities:
Loss before taxation (10,834) (6,719)
Finance income (391) (1,860)
Finance expense 52 820
Share-based payment charge 1,447 620
Decrease in prepayments and other receivables 753 84
Decrease in trade and other payables (1,553) (2,899)
Depreciation of property, plant and equipment and
right of use assets 122 78
Impairment of right of use asset 232 --
Unrealized foreign exchange losses / (gains) 1 (11)
Amortization of intangible assets 30 24
---------- ----- ---------- -----
Net cash used in operating activities (10,141) (9,863)
---------- ---- ---------- ----
Cash flow from investing activities:
Interest received 98 125
Purchase of plant and equipment (4) (2)
Payment for patents and computer software (45) (61)
Maturity of short term investments 7,148 8,972
---------- ----- ---------- -----
Net cash generated in investing activities 7,197 9,034
---------- ----- ---------- -----
Cash flow from financing activities:
Repayment of finance lease liabilities (132) (84)
---------- ---- ---------- ----
Net cash used in financing activities (132) (84)
---------- ---- ---------- ----
Net decrease in cash and cash equivalents (3,076) (913)
Cash and cash equivalents at the beginning of the
period 22,934 19,784
Effect of exchange rates on cash and cash
equivalents 201 (145)
---------- ----- ---------- ----
Cash and cash equivalents at the end of the period 20,059 18,726
========== ===== ========== =====
VERONA PHARMA PLC
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
FOR THE THREE MONTHSED MARCH 31, 2020
1. General information
Verona Pharma plc (the "Company") and its subsidiaries are a
clinical-stage biopharmaceutical company focused on developing and
commercializing innovative therapeutics for the treatment of respiratory
diseases with significant unmet medical needs.
The Company is a public limited company, which is dual listed, with its
ordinary shares listed on the AIM market operated by the London Stock
Exchange and its American Depositary Shares ("ADSs") on the Nasdaq
Global Market. The Company is incorporated and domiciled in the United
Kingdom.
The address of the registered office is 1 Central Square, Cardiff, CF10
1FS, United Kingdom. The Company has two subsidiaries, Verona Pharma
Inc. and Rhinopharma Limited, both of which are wholly owned.
2. Basis of accounting
The unaudited condensed consolidated interim financial statements of
Verona Pharma Plc and its subsidiaries, Verona Pharma, Inc., and
Rhinopharma Limited ("Rhinopharma") (together "the Group"), for the
three months ended March 31, 2020, do not include all the statements
required for full annual financial statements and should be read in
conjunction with the consolidated financial statements of the Group as
of December 31, 2019.
The 2019 accounts, on which the Company's auditors delivered an
unqualified audit report, have been delivered to the Registrar of
Companies.
These unaudited condensed interim financial statements were authorized
for issue by the Company's board of directors (the "Directors") on April
30, 2020. There have been no changes to the accounting policies as
contained in the annual consolidated financial statements as of and for
the year ended December 31, 2019, which have been prepared in accordance
with international financial reporting standards ("IFRS") as issued by
the International Accounting Standards Board ("IASB").
The Group's activities and results are not exposed to any seasonality.
The Group operates as a single operating and reportable segment.
Going concern
The Group has incurred recurring losses since inception, including net
losses of GBP31.9 million, GBP19.9 million and GBP20.5 million for the
years ended December 31, 2019, 2018 and 2017, respectively. In addition,
as of March 31, 2020, the Group had an accumulated loss of GBP110.2
million. The Group expects to continue to generate operating losses for
the foreseeable future. As of the issuance date of these condensed
consolidated interim financial statements, the Group expects that its
cash and cash equivalents, would be sufficient to fund its operating
expenses and capital expenditure requirements for at least 12 months
from the issuance date of these condensed consolidated interim financial
statements. Accordingly, the consolidated financial statements have been
prepared on a basis that assumes the Group will continue as a going
concern and which contemplates the realization of assets and
satisfaction of liabilities and commitments in the ordinary course of
business.
The Group intends to initiate its Phase 3 program for the maintenance
treatment of COPD once it believes it has alignment with the U.S. Food
and Drug Administration ("FDA") on its planned design for the Phase 3
clinical program. The Group will require significant additional funding
to initiate and complete this Phase 3 program and will need to secure
the required capital to fund the program. The Group intends to seek
additional funding through public or private financings, debt financing,
collaboration or licensing agreements and other arrangements. However,
there is no guarantee that the Group will be successful in securing
additional finance on acceptable terms, or at all, and should the Group
be unable to raise sufficient additional funds it will be required to
defer the initiation of Phase 3 clinical trials and other development
activities, until such funding can be obtained. This could also force
the Group to delay, reduce or eliminate some or all of its research and
development programs, product portfolio expansion or commercialization
efforts, or pursue alternative development strategies that differ
significantly from its current strategy, which could have a material
adverse effect on the Group's business, results of operations and
financial condition.
Additionally the ongoing COVID-19 pandemic could impact the Group's
ability to initiate its planned Phase 3 development program and could
cause further disruption to capital markets, either of which could
adversely affect the Group's ability to raise the necessary capital.
The Group is monitoring the effect of the COVID-19 pandemic and
reviewing the possible impact on its operations, planned clinical trials
and the potential disruption to financial markets in the near and the
long term. Management has determined that this currently does not affect
the going concern assumption under which the condensed consolidated
interim financial statements are prepared.
Impairment of intangible assets, goodwill and non-financial assets
The Group is constantly reviewing the effect of the COVID-19 pandemic on
its operations, ongoing and planned clinical trials and the potential
disruption to financial markets. Management has determined that the
current effect on the Group does not require an impairment of intangible
assets or goodwill as the Company's market value still supports the
value of the assets. However, management will continue to monitor the
situation.
Dividend
The Directors do not recommend the payment of a dividend for the three
months ended March 31, 2020, (three months ended March 31, 2019: GBPnil
and the year ended December 31, 2019: GBPnil).
3. Segmental reporting
The Group's activities are covered by one operating and reporting
segment: Drug Development. There have been no changes to management's
assessment of the operating and reporting segment of the Group during
the period.
All non-current assets are based in the United Kingdom apart from a
right-of-use asset relating to property a lease in the United States.
4. Financial Instruments
The Group's activities expose it to a variety of financial risks: market
risk (including foreign currency risk); cash flow and fair value
interest rate risk; and credit risk and liquidity risk. The condensed
consolidated interim financial statements do not include all financial
risk management information and disclosures required in the annual
financial statements, and they should be read in conjunction with the
Group's annual financial statements for the year ended December 31,
2019.
5. Critical estimates and judgments
The preparation of condensed consolidated interim financial statements
require management to make judgments, estimates and assumptions that
affect the application of accounting policies and the reported amounts
of assets and liabilities, income and expenses. Actual results may
differ from those estimates.
In preparing these condensed consolidated interim financial statements,
the significant judgments made by management in applying the Group's
accounting policies and the key sources of estimation uncertainty were
the same as those applied to the consolidated financial statements for
the year ended December 31, 2019, with the exception of development of
the COVID-19 pandemic.
We have assessed whether the COVID-19 pandemic has any impact on the key
estimates and judgments previously reported in respect of the derivative
financial instruments and the assumed contingent obligation and
concluded that there is no impact.
6. Finance income and expense
Three months Three months
ended ended
March 31, 2020 March 31, 2019
--------------- -----------------
Finance income: GBP'000s GBP'000s
Interest received on cash balances 53 250
Foreign exchange gain on translating foreign currency
denominated bank balances 226 --
Fair value adjustment on derivative financial instruments
(note 11) 112 1,610
Total finance income 391 1,860
=============== ===============
Three months Three months
ended ended
March 31, 2020 March 31, 2019
--------------- -----------------
Finance expense: GBP'000s GBP'000s
Interest on discounted lease liability 20 9
Foreign exchange loss on translating foreign currency
denominated balances -- 783
Unwinding of discount factor related to the assumed
contingent arrangement (note 12) 32 28
--------------- ---------------
Total finance expense 52 820
=============== ===============
7. Taxation
The tax credit for the three months ended March 31, 2020, amounts to
GBP1.3 million, and consists of the estimated research and development
tax credit receivable on qualifying expenditure incurred during the
three months ended March 31, 2020 for an amount of GBP1.3 million less a
tax expense of GBP40 thousand related to the US operations (three months
ended March 31, 2019: GBP1.3 million tax credit, comprising GBP1.3
million for research and development tax credit, less GBP3 thousand
expense for tax on US operations).
8. Loss per share calculation
The basic loss per share of 9.1p (March 31, 2019: 5.1p) for the three
months ended March 31, 2020 is calculated by dividing the loss for the
three months ended March 31, 2020, by the weighted average number of
ordinary shares in issue of 105,453,364 during the three months ended
March 31, 2020 (March 31, 2019: 105,326,637). Since the Group has
reported a net loss, diluted loss per ordinary share is equal to basic
loss per ordinary share.
Each ADS represents 8 shares of the Company, so the loss per ADS is any
period is equal to 8 times the loss per share.
9. Right-of-use assets
ln the three months to March 31, 2020, a new lease was signed in North
Carolina and a liability and corresponding right-of-use ("ROU") asset of
GBP575 thousand was recognized. The lease terminates on April 30, 2024.
As at December 31, 2019, the Group had a ROU asset relating to office
space in New York. In the three months to March 31, 2020, the New York
office was closed and the ROU asset was subject to an impairment review
and its net book value of GBP232 thousand was subsequently expensed to
the income statement. The Group retains a liability of GBP224 thousand
relating to this asset.
10. Short term investments
Short term investments as at March 31, 2020, amounted to a total of
GBP0.7 million (December 31, 2019: GBP7.8 million) and consisted of
fixed term deposits.
11. Derivative financial instrument
On July 29, 2016, the Company issued 31,115,926 units to new and
existing investors at the placing price of GBP1.4365 per unit. Each unit
comprises one ordinary share and one warrant.
The warrant holders can opt for a cashless exercise of their warrants,
whereby they can choose to exchange the warrants held for a reduced
number of warrants exercisable at nil consideration. The reduced number
of warrants is calculated based on a formula considering the share price
and the exercise price of the warrants. The warrants are therefore
classified as a derivative financial liability, since their exercise
could result in a variable number of shares to be issued.
The warrants entitled the investors to subscribe for, in aggregate, a
maximum of 12,401,262 shares. The warrants can be exercised until May 2,
2022.
At December 31, 2019, and March 31, 2020, warrants over 12,401,262
shares were in effect.
At March 31, 2020 At December 31, 2019
--------------------- ------------------------
Shares available to be
issued under warrants 12,401,262 12,401,262
Exercise price GBP 1.7238 GBP 1.7238
Risk-free interest rate 0.10% 0.54%
Time to expiry 2.09 years 2.34 years
Annualized volatility 76.32% 65.56%
Dividend rate 0.00% 0.00%
As at March 31, 2020, the Group updated the underlying assumptions and
calculated a fair value of these warrants of GBP0.8 million.
The variance for the three months ended March 31, 2020, was GBP0.1
million (three months ended March 31, 2019: GBP1.6 million) and is
recorded as finance income in the Consolidated Statement of
Comprehensive Income.
Derivative Derivative
financial financial
instrument instrument
------------- -------------
2020 2019
------------- -------------
GBP'000s GBP'000s
At January 1, 895 2,492
Fair value adjustments recognized in profit or
loss (112) (1,610)
--------- ----------
At March 31, 783 882
========= ==========
For the amount recognized as at March 31, 2020, the effect if volatility
were to deviate up or down is presented in the following table.
Volatility
(up / down
10 % pts)
-----------
GBP'000s
Variable up 1,100
Base case, reported fair value 783
Variable down 500
12. Assumed contingent obligation related to the business combination
The value of the assumed contingent obligation as of March 31, 2020,
amounted to GBP1,156 thousand (December 31, 2019: GBP1,103 thousand).
The increase in value of the assumed contingent obligation during the
three months ended March 31, 2020, amounted to GBP53 thousand (three
months ended March 31, 2019: GBP22 thousand).
The assumed contingent liability is measured at the expected value of
the milestone payment and royalty payments. This expected value is based
on estimated future royalties payable, derived from sales forecasts, and
an assessment of the probability of success using standard market
probabilities for respiratory drug development. The risk-weighted value
of the assumed contingent arrangement is discounted back to its net
present value applying an effective interest rate of 12%.
The assumed contingent liability is accounted for as a liability and its
value is measured at amortized cost using the effective interest rate
method, and is re-measured for changes in estimated cash flows or when
the probability of success changes. Re-measurements relating to changes
in estimated cash flows and probabilities of success are recognized in
the IP R&D asset it relates to. The unwind of the discount is recognized
in finance expense. In 2019 and the three months ended March 31, 2020,
there were no events that triggered remeasurement. Should the Group
determine that it has moved from its Phase 2 to Phase 3 stage of
development then the value of the liability could increase by between
GBP15 million and GBP30 million; the increase in the value of the
liability will give rise to an approximately equivalent increase in the
value of the IP R&D asset it relates to.
2020 2019
-------- ----------
GBP'000s GBP'000s
At January 1, 1,103 996
Impact of changes in foreign exchange rates 21 (6)
Unwinding of discount factor 32 28
-------- -------
At March 31, 1,156 1,018
======== =======
There is no material difference between the fair value and carrying
value of the financial liability.
For the amount recognized as at March 31, 2020, of GBP1,156 thousand,
the effect if underlying assumptions were to deviate up or down is
presented in the following table (assuming the probability of success
does not change):
Foreign
Revenue Exchange
(up / down (up / down
10 % pts) 1% pt)
GBP'000s GBP'000s
Variable up 1,191 1,152
Base case, reported fair value 1,156 1,156
Variable down 1,121 1,159
13. Share option scheme
During the three months ended March 31, 2020 the Company granted
1,605,000 share options and forfeited 1,628,799 share options (in the
three months ended March 31, 2019, the Company granted no share options
nor forfeited any share options). The forfeitures were part of the
severance agreements relating to executive changes.
During the three months ended March 31, 2020 the Company granted
8,442,049 Restricted Stock Units ("RSUs") (three months ended March 31,
2019, the Company granted no RSUs).
The movement in the number of the Company's share options is set out
below:
Weighted Weighted
average average
exercise exercise
price 2020 price 2019
--------- ----------- --------- -----------
GBP GBP
Outstanding at
January 1 1.15 14,179,196 1.53 8,752,114
Granted during the
period 0.55 1,605,000 -- --
Forfeited during
the period 1.02 (1,628,799) -- --
---------
Outstanding
options at March
31 1.10 14,155,397 1.53 8,752,114
========== =========
The movement in the number of the Company's RSUs is set out below:
2020 2019
---------- ---------
Outstanding at January 1 1,602,969 862,473
Granted during the period 8,442,049 --
Expired during the period (44,846) --
Exercised during the period (887,080) --
---------
Outstanding RSUs at March 31 9,113,092 862,473
========= =======
1,069,184 of the RSUs issued related to an element of annual base salary
and 7,372,865 related to additional equity grants for Dr. Zaccardelli
and Mr. Hahn (see note 14). Using the Black-Scholes valuation model the
fair value of each RSUs relating to annual base salary was GBP0.55 and
the fair value of each RSU relating to the additional grants was
estimated at GBP0.525 as at 31 March, 2020.
The share--based payment expense for the three months ended March 31,
2020, was GBP1,447 thousand (three months ended March 31, 2019: GBP620
thousand).
14. Related party transactions
The Directors and Officers have authority and responsibility for
planning, directing and controlling the activities of the Company and
they therefore comprise key management personnel as defined by IAS 24
("Related Party Disclosures").
During the three months ended March 31, 2020, Dr. Jan-Anders Karlsson,
the Company's former CEO, and Piers Morgan, the Company's former CFO,
resigned and were replaced by Dr. David Zaccardelli as CEO and President,
and Mark Hahn as CFO.
Dr. Jan-Anders Karlsson's severance agreement included severance pay
equal to GBP479,160, a cash bonus of GBP40,000, a payment as
compensation of termination of employment of GBP100,000 and base salary
in lieu of notice of GBP363,000. Other benefits included continued
medical and life insurance and continued pension contributions.
Piers Morgan's severance agreement included severance pay equal to
GBP123,930 as payment in lieu of notice, a cash bonus of GBP82,620, ex
gratia compensation of GBP30,000 and GBP40,000 additional compensation
for termination of employment.
Pursuant to the terms of his employment agreement Dr. Zaccardelli is
entitled to receive an annual base salary of $750,000, payable $250,000
in cash and $500,000 in restricted stock units, and a target annual
bonus opportunity of 50% of his annual base salary. Dr. Zaccardelli is
also entitled to receive an award of restricted stock units, equal to 4%
of the Company's outstanding ordinary shares, and an additional award of
restricted stock units if the Company raises additional equity capital
during fiscal year 2020, which is intended to result in Dr.
Zaccardelli's equity awards (other than the portion of his base salary
payable in restricted stock units) being equal to 4% of the Company's
outstanding ordinary shares on the applicable date of issuance.
Pursuant to the terms of his employment agreement Mr. Hahn is entitled
to receive an annual base salary of $500,000, payable $250,000 in cash
and $250,000 in restricted stock units, and a target annual bonus
opportunity of 50% of his annual base salary. Mr. Hahn is also entitled
to receive an initial award of restricted stock units, equal to 3% of
the Company's outstanding ordinary shares and an award of restricted
stock units equal to 1% of the Company's outstanding ordinary share
after six months of employment. He will also be entitled to an
additional award of restricted stock units if the Company raises
additional equity capital during fiscal year 2020, which is intended to
result in Mr. Hahn's equity awards (other than the portion of his base
salary payable in restricted stock units) being equal to 4% of the
Company's outstanding ordinary shares on the applicable date of
issuance.
Convenience translation
The Company maintains its books and records in pounds sterling and
prepares its financial statements in accordance with IFRS, as issued by
the IASB. It reports its results in pounds sterling. For the convenience
of the reader the Company has translated pound sterling amounts in the
tables below as of March 31, 2020, and for the three months ended March
31, 2020, into US dollars at the noon buying rate of the Federal Reserve
Bank of New York on March 31, 2020, which was GBP1.00 to $1.2454. These
translations should not be considered representations that any such
amounts have been, could have been or could be converted into US dollars
at that or any other exchange rate as of that or any other date.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF FINANCIAL POSITION AS AT
MARCH 31, 2020 AND DECEMBER 31, 2019 (UNAUDITED)
As of As of As of
March 31, 2020 March 31, 2020 December 31, 2019
--------------- --------------- --------------------
GBP'000s $'000s GBP'000s
ASSETS
Non-current
assets:
Goodwill 441 550 441
Intangible
assets 2,772 3,452 2,757
Property, plant
and equipment 42 52 43
Right-of-use
assets 1,210 1,507 971
Total
non-current
assets 4,465 5,561 4,212
-------------- -------------- ----------------
Current assets:
Prepayments and
other
receivables 1,972 2,456 2,770
Current tax
receivable 8,667 10,794 7,396
Short term
investments 700 872 7,823
Cash and cash
equivalents 20,059 24,981 22,934
Total current
assets 31,398 39,103 40,923
-------------- -------------- ----------------
Total assets 35,863 44,664 45,135
============== ============== ================
EQUITY AND
LIABILITIES
Capital and
reserves
attributable to
equity
holders:
Share capital 5,311 6,614 5,266
Share premium 118,862 148,031 118,862
Share-based
payment
reserve 11,811 14,709 10,364
Accumulated
loss (110,160) (137,193) (100,627)
-------------- -------------- ----------------
Total equity 25,824 32,161 33,865
-------------- -------------- ----------------
Current
liabilities:
Derivative
financial
instrument 783 975 895
Lease
liabilities 623 776 460
Trade and other
payables 6,619 8,243 8,261
Total current
liabilities 8,025 9,994 9,616
-------------- -------------- ----------------
Non-current
liabilities:
Assumed
contingent
obligation 1,156 1,440 1,103
Non-current
Lease
Liability 809 1,008 491
Deferred income 49 61 60
----------------
Total
non-current
liabilities 2,014 2,509 1,654
-------------- -------------- ----------------
Total equity
and
liabilities 35,863 44,664 45,135
============== ============== ================
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME FOR
THE THREE MONTHS ENDED MARCH 31, 2020 AND MARCH 31, 2019 (UNAUDITED)
Three months ended Three months ended Three months ended
March 31, 2020 March 31, 2020 March 31, 2019
-------------------- -------------------- --------------------
GBP'000s $'000s GBP'000s
Research and development costs (5,872) (7,313) (5,928)
General and administrative costs (5,301) (6,602) (1,831)
----------- ------ ----------- ------ ----------- ------
Operating loss (11,173) (13,915) (7,759)
Finance income 391 487 1,860
Finance expense (52) (65) (820)
----------- ------ ----------- ------ ----------- ------
Loss before taxation (10,834) (13,493) (6,719)
Taxation -- credit 1,261 1,570 1,313
----------- ------- ----------- ------- ----------- -------
Loss for the period (9,573) (11,923) (5,406)
Other comprehensive loss:
Items that might be subsequently reclassified to profit
or loss
-------------------- --------------------
Exchange differences on translating foreign operations 40 50 (13)
----------- ------- ----------- ------- ----------- ------
Total comprehensive loss attributable to owners of
the Company (9,533) (11,873) (5,419)
=========== ====== =========== ====== =========== ======
Loss per ordinary share -- basic and diluted (pence
/ cents) (9.1) (11.3) (5.1)
(END) Dow Jones Newswires
April 30, 2020 02:00 ET (06:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
Verona Pharma (LSE:VRP)
Historical Stock Chart
From Apr 2024 to May 2024
Verona Pharma (LSE:VRP)
Historical Stock Chart
From May 2023 to May 2024