Verona Pharma

Verona Pharma can take its asthma and fever treatment to its next trial phase after approval by the Netherlands Ethics Committee.

A clinical update from the AIM-quoted company says its RPL554 treatment can now go to the final stage of its Phase I/IIa clinical trial. Analysts suggest London-based Verona should be well placed to have RPL554 licensed if it successfully completes this trial.

Verona, which seeks to research, discover and develop new therapeutic drugs for hay fever, asthma and and other chronic respiratory diseases, has been conducting the RPL554 trials at the Centre for Human Drug Research at Leiden in Holland. Not wanting to have all its eggs in one basket, the company is also working on another project, ‘Novel Anti-Inflammatory Polysaccharides’, to develop a new anti-inflammatory drug.

As a drug discoverer, profits have so far eluded Verona, chaired by Professor Clive Page and steered by chief executive officer Dr Clive Walker. The company lost £1.3m last year, but, after raising £2.3m at 4p, ended 2008 with £2.5m cash.

Shares in Verona, floated four years ago at 2p, reached 6.25p in 2007 before crumbling to 2.13p by last August. Tipped by Growth Company Investor at 4.12p, they have since rallied 40% to 6.62p, and could make further progress if clinical developments go well.