David Zaccardelli, President and CEO of Verona Pharma plc (NASDAQ:VRNA), recently sold a portion of his holdings in the company. According to a SEC filing, Zaccardelli sold 1,600 ordinary shares at a price of $5.00 each, amounting to a total transaction value of $8,000. This transaction was executed as part of a pre-arranged trading plan established under Rule 10b5-1 on March 8, 2024. Following the sale, Zaccardelli holds approximately 15,200,752 ordinary shares, including shares represented by American Depositary Shares (ADSs).
In other recent news, Verona Pharma reported strong third-quarter financial results, with a significant increase in revenue. The company reported $5.6 million in top-line revenue for Q3 2024, surpassing Wall Street's highest estimate of $3.5 million. This revenue was generated entirely from sales of Ohtuvayre, its sole marketed product for treating chronic obstructive pulmonary disease (COPD), which received FDA approval in June 2024.
Following these results, H.C. Wainwright maintained a Buy rating on Verona Pharma shares and increased the price target to $42.00 from the previous target of $36.00. The firm also revised its revenue forecast for Verona to $22.5 million for 2024, up from the earlier projection of $12.5 million, and for the full year 2025 to $126.2 million from $117.3 million.
Other recent developments include Verona Pharma being assigned a unique J-code for Ohtuvayre, J7601, which is expected to take effect in January 2025. This new J-code is anticipated to aid in the market uptake of the drug. Despite reporting a net loss of $43 million for Q3, Verona Pharma maintains a strong balance sheet, with $336 million in cash and equivalents.
The company also plans to provide detailed revenue guidance in early 2025. Lastly, Verona Pharma is focusing on increasing interactions with Tier 1 and Tier 2 physicians to improve prescribing behavior of Ohtuvayre.
InvestingPro Insights
While David Zaccardelli's recent sale of Verona Pharma shares may raise eyebrows, it's important to consider the broader financial picture of the company. According to InvestingPro data, Verona Pharma has shown impressive revenue growth, with a staggering 1127.95% increase in the last twelve months as of Q3 2024. This substantial growth suggests that the company is making significant strides in its market position.
Moreover, Verona Pharma boasts a robust gross profit margin of 90.34%, indicating strong pricing power and efficient cost management. This aligns with one of the InvestingPro Tips, which highlights the company's "impressive gross profit margins."
Despite these positive indicators, investors should note that Verona Pharma is not currently profitable, with a negative operating income of $151.3 million in the last twelve months. This is consistent with another InvestingPro Tip stating that "analysts do not anticipate the company will be profitable this year."
It's worth mentioning that Verona Pharma's stock has shown strong performance, with a 179.78% price total return over the past year. The stock is currently trading near its 52-week high, which could explain the timing of Zaccardelli's sale as part of his pre-arranged trading plan.
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Verona Pharma, providing a deeper understanding of the company's financial health and market position.
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