Verona Pharma

A developer of drugs to treat asthma, hayfever and coughing with a very low cost base, Verona expects soon to sign a lucrative licence deal for its lead drug candidate.

This drug compound, which was created by the same man who developed most of the world’s prevailing asthma drugs and currently goes by the catchy moniker of RPL554, is designed to both prevent and treat asthma. Currently asthma sufferers take a ‘beta-agonist’, like Ventolin, to relieve them of an attack, as well as regular doses of a steroid as a preventative.

RPL554 combines prevention and relief, without the negative effects of current treatments. Verona’s chairman, Professor Clive Page, a leading pulmonary authority, says RPL554 is ‘a Viagra of the airways’, as it acts in a similar way to Pfizer’s blue pill. Verona’s treatment could have a similar impact, with the asthma market estimated at $15bn annually. Big pharma companies are eager to find replacements for the established drugs, as they come off-patent in 2012.

‘We’ve had knocks on the door about a licence deal,’ says Page, who wants to finish current Phase I/II clinical trials before beginning negotiations. ‘By October we should have a good indication if the trial is going to plan, and we are now hiring people who specialise in putting these massive deals together.’

Verona, which has two other treatments at earlier stages, has ‘around £3m’ cash in the bank and minimal overheads, since the business has only two full-time staff. ‘We’re budgeted to do what we want to do,’ says Page, ‘and with the clinical study costing between £400,000 and £500,000, we’ve got sufficient [cash] to see us through this stage.’ A classic high-risk, high-reward situation.

Save 50% off your first year’s subscription to Growth Company Investor magazine, and gain immediate access to all the recommendations online. Click here.