NASDAQ$VRNA

Verona Pharma plc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year ended December 31, 2022, and provided a corporate update.

Verona Pharma reported positive Phase 3 data from its ENHANCE-1 trial and completed a $150 million debt financing facility in Q4 2022. Cash and cash equivalents were $227.8 million at the end of the year, which, combined with other funding sources, is expected to fund operations through at least the end of 2025. The company is preparing for a planned commercial launch of ensifentrine in the US in 2024.

  • Reported positive top-line Phase 3 data from ENHANCE-1 trial, meeting primary and key secondary endpoints.
  • Completed a $150 million debt financing facility with Oxford Finance.
  • Cash and cash equivalents at December 31, 2022, were $227.8 million.
  • Expect to submit an NDA to the US FDA in the second quarter of 2023 for inhaled ensifentrine for the maintenance treatment of patients with COPD.

Headline financials

Total Revenue

$458K

No prior period
EPS (adj)

-$0.14

Previous: -$0.40+65.0%
Free Cash Flow

-$7.74M

Previous: -$17.3M+55.3%
Net Income

-$10.5K

Previous: -$23.3K+55.1%
Operating Income

-$14.3M

Previous: -$28.5K-49970.3%
Gross Profit

$112K

No prior period
Cash & Equivalents

$228K

Previous: $148K+53.5%
Total Assets

$259K

Previous: $187K+39.1%
Stock-Based Comp

$4.5M

Previous: $4.19M+7.6%

Revenue & EPS history

Verona Pharma · Revenue · Quarterly

$458K

Q4 2022
Beat estimate in 3 of 7 quarters(43%)
ActualEstimate

Forward guidance

Verona Pharma anticipates a pivotal 2023, focusing on preparing for the potential US commercial launch of ensifentrine in 2024, pending FDA approval. The company plans to submit an NDA in Q2 2023 and release further data from the ENHANCE trials at upcoming scientific conferences.

Tailwinds

  • Planned NDA submission to the US FDA in Q2 2023.
  • Potential commercial launch of ensifentrine in the US in 2024, if approved.
  • Release of additional data from ENHANCE trials at upcoming scientific conferences.
  • Potential for ensifentrine to be the first therapy combining bronchodilator and non-steroidal anti-inflammatory benefits.
  • Expect these funds to extend our cash runway through at least the end of 2025.

Headwinds

  • Reliance on the success of ensifentrine.
  • Uncertain outcome of the lengthy and expensive clinical drug development process.
  • Potential for serious adverse side effects associated with ensifentrine.
  • Dependence on third parties for development and commercialization.
  • Vulnerability to unexpected events, including health epidemics or pandemics

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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