NASDAQ$VRNA

Verona Pharma plc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Reported financial results for the second quarter of 2021 and provided a corporate update.

Verona Pharma reported progress on their Phase 3 ENHANCE program and a strategic collaboration with Nuance Pharma. They also announced their Q2 2021 financial results, including a net loss of $22.1 million and cash and cash equivalents of $146.0 million.

  • Phase 3 ENHANCE program is on track to report top-line data in 2022.
  • Strategic collaboration with Nuance Pharma in Greater China for up to $219 million.
  • ENHANCE-2 expected to report top-line data in the first half of 2022 and ENHANCE-1 in the second half of 2022.
  • Received $40.0 million upfront payment from Nuance Pharma, consisting of $25.0 million in cash and an equity interest valued at $15.0 million.

Headline financials

EPS (adj)

-$0.40

Previous: -$0.72+44.4%
Free Cash Flow

-$20.2M

Previous: -$3.06M-560.1%
Net Income

-$22.1M

Previous: -$9.05M-143.9%
Operating Income

-$28.5M

Previous: -$10.5M-172.3%
Cash & Equivalents

$146M

Previous: $22.4M+553.1%
Total Assets

$219M

No prior period
Stock-Based Comp

$7.45M

Previous: $950K+684.2%

Revenue & EPS history

Verona Pharma · Revenue · Quarterly

$103M

Q2 2025
Beat estimate in 1 of 3 quarters(33%)
ActualEstimate

Forward guidance

Verona Pharma expects to report top-line data from ENHANCE-2 in the first half of 2022 and ENHANCE-1 in the second half of 2022, but these timelines may be affected by the COVID-19 pandemic.

Tailwinds

  • ENHANCE Phase 3 program on track to report top-line data in 2022
  • Strategic collaboration with Nuance Pharma provides additional funds to support development efforts
  • Expect ENHANCE-2 to be approximately 70% enrolled by the end of August.
  • Expect the 48-week subset in ENHANCE-1 to be approximately 80% enrolled by the end of August.
  • Company believes cash and cash equivalents will enable funding of planned operating expenses and capital expenditure requirements through at least 2023.

Headwinds

  • COVID-19 related challenges have put pressure on recruitment timelines.
  • Timelines may be affected by the COVID-19 pandemic.
  • Models predict top-line data would be expected in the third quarter of 2022 from ENHANCE-2 and the fourth quarter of 2022 from ENHANCE-1 should COVID-19 related challenges continue to increase.
  • The COVID-19 pandemic continues to impact a number of clinical trial activities.
  • Closely monitoring the potential impact of the COVID-19 pandemic on its operations and clinical trials.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 7 quarterly earnings reports

Historical avg

+3.3%

Avg return

Earnings day

+7.2%

Avg return

5 days after

+5.6%

Avg return

30 days after

48%

12 / 25 earnings

Positive

+56.8%

Q2 2022

Best reaction

-14.7%

Q4 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025
Q3 2025
Q2 2025-0.0%-0.1%+0.9%
Q1 2025+6.4%+5.6%+12.5%
Q4 2024+5.7%+6.4%+1.5%
Q3 2024+9.7%+10.2%+14.0%
Q2 2024+15.8%+36.5%+35.1%
Q1 2024-0.2%-6.8%-18.4%
Q4 2023+5.4%-1.1%-6.4%
Q3 2023+7.6%
Q2 2023-3.4%
Q1 2023+7.1%
Q4 2022-8.5%
Q3 2022-5.8%
Q2 2022+56.8%
Q1 2022+3.8%
Q4 2021-1.1%
Q3 2021-1.7%
Q2 2021+3.9%
Q1 2021-4.4%
Q4 2020-0.1%
Q2 2020+10.3%
Q4 2019-14.7%
Q4 2018-3.3%
Q3 2018+2.1%
Q4 2017-3.5%
Q3 2017-4.2%
Q4 2016
Q3 2016
Q2 2016
Q4 2015
Q4 2014
Q4 2013
Q4 2012

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