Vernalis Share Discussion Threads

[in despair sybil] 19/4/2010 17:03

if i'm not mistaken then Biogen Idec report their 1st quarter results tomorrow. maybe an update on V2006 ( vipadenant )

here's hoping

IDS

[rfinance] 16/4/2010 12:44

Just thought I would switch the onus from the other thread which seems to be dominated by one person.

[dpeach] 15/4/2010 10:43

lots of action today (compared to usual) has this had a write up? anyone seen anything

[dpeach] 12/4/2010 20:56

Vernalis targets drug rivals in buy up hunt
Lucy Tobin Lucy Tobin
12.04.10

Biotech specialist Vernalis was today planning a shopping trip as it laid out plans to buy up rival companies with cancer and neurone drugs in late-stage development.

The firm, which is based near Reading, posted a pre-tax loss of £9.3 million for 2009, down from £12.5 million a year earlier.

Revenue rose 27% to £13 million but Vernalis still only has one product - migraine drug Frovatriptan - available to patients. Since it also has no treatments in phase three trials, chief executive Ian Garland said he is looking to expand the firm's pipeline through in-licensing - when pharma firms form a partnership to develop a particular drug - and acquisitions.

He added: "Most likely the acquisitions will be in our areas of focus, oncology and central nervous system."

Vernalis finished the year with cash of £26.4 million, and raised another £28.5 million in March through a share placing.

The biotech firm told analysts to expect news of trials on five of its drugs this year, for patients suffering from cancer, chronic coughs, and inflammation.

[dpeach] 12/4/2010 08:10

Pretty good.........

Operational Highlights
Events in the priority pipeline during 2009 and since the year end
· Two pre-clinical candidates selected:
o V158866 FAAH inhibitor for pain
o V158411 Chk1 inhibitor for cancer
· Vipadenant (V2006/BIIB014) (Parkinson's disease):
o Positive headline Phase IIa data from two studies
· AUY922 (Cancer):
o Publication of interim Phase I data at 2009 ASCO meeting
o Maximum Tolerated Dose achieved (Q3 2009)
o Initiation of Phase II proof-of-concept study, triggering $3 million
milestone from Novartis (March 2010)
· HSP990 (Cancer):
o Entry into Phase I studies July 2009, triggering $1.5m milestone from
Novartis
· Frovatriptan European and Central American royalties:
o Regained 100% of Menarini royalties (March 2010)
o Paul Capital Healthcare royalty agreements terminated
· V3381 (Neuropathic Pain and Chronic Cough):
o Phase IIb IN-STEP neuropathic pain study recruitment completed ahead of
schedule (September 2009)
o Phase II pilot study initiated in Chronic Cough (September 2009)
o Phase IIb IN-STEP negative study results (March 2010)
Events in research during 2009
· Second cancer research collaboration secured with Servier (May 2009)
· Research, Option and License Agreement with GSK (August 2009):
o $6 million up-front milestone and equity investment
o Up-to $200 million up-front and total milestones for cancer indications
o Up-to double digit royalties on sales
o Further potential substantial milestones for non-cancer indication
Events in the legacy pipeline during 2009
· RPL554 (Respiratory):
o Positive Phase II results announced by partner Verona Pharma (September 2009)
· V1512 (Parkinson's disease):
o Rights being returned to Chiesi following failure to secure a partner (Q2
2010)

Financial Highlights
· Revenue (pre-exceptional items) of GBP13.0 million, up 27%
· Underlying operating costs reduced by GBP3.5 million in the year
· Loss from continuing operations (pre-exceptional items) reduced by 47%
· GBP22.1 million (net of expenses) equity fundraising (May 2009)
· GBP26.4 million of cash resources at 31 December 2009
· GBP28.5 million (net of expenses) equity fundraising (March 2010):
o approximately GBP21.0 million used to terminate the agreements with Paul
Capital Healthcare

Expected Newsflow
· V158411 (cancer): Start of Phase I trials (H2 2010)
· V158866 (pain): Start of Phase I trials (H2 2010)
· V3381 (Chronic Cough): Complete Phase II pilot study recruitment (2010
year-end)
· AUY922 (cancer): Proof-of-concept Phase II study results (Novartis) (2010)
· V85546 (inflammation): Possible partnering (2010)
· Vipadenant (Parkinson's disease): Start registrational studies (Biogen
Idec) (timing undisclosed)
· HSP990 (cancer): Establish Maximum Tolerated Dose (Novartis) (timing
undisclosed)

Ian Garland, Chief Executive Officer, commented,

"We have accomplished a great deal in 2009, both financially and operationally,
and on balance have had a very successful year. Vernalis has been transformed
since the start of 2009 and is extremely well positioned to build on that
success in 2010."

[in despair sybil] 06/4/2010 22:52

well what a kerfuffle this has turned out to be.

can't see much short term downside from these levels. mkt cap of 54m, annual income from frova europe circa 7.5m and sales rising aprox 15% annually, working capital for at least 3 years. sell-off post recent news has been overdone on relitavely low volume.

hence, used my isa allowance to (foolishly?) buy a few more today.

my previous secondary target of 130 to 140 is now out of the window, after the open offer and the dissapointing in-step data, but my primary target of 100 to 110 is still attainable with some positive newsflow. there are also plenty of gaps to fill on the way to this level, though i'm hoping i don't have to hold these for as long as the two years plus since i got back into this company.

results next monday (maybe accompanied with some good news for a change...please pretty please), and maybe some broker notes following thereafter.

a couple of snipbits ...

... a mention in todays wall street journal



Big pharmaceutical companies such as Merck & Co. have long looked to biotechs for new drugs to restock pipelines and bring revenues tomorrow, making biotechs the perennial subject of takeover chatter. But recent setbacks at Britain's Vectura Group PLC and Antisoma PLC underscore why a cautious licensing strategy may be a better alternative, at least when it comes to money-losing development-stage companies.

Vectura and Antisoma both have Novartis AG as a key development partner. Back in November, Dow Jones Investment Banker argued that while they may have seemed ripe for takeover, there seemed to be little precedent to suggest that Novartis was about to pull the trigger.

And so it has proved to be.

Antisoma's stock plunged 75% March 29, after ASA404, one of its lead projects, failed a Phase III lung-cancer study. Vectura, meanwhile, lost 24% of its value after Novartis decided that it didn't, after all, want to pursue U.S. development of a major generic asthma drug.

The pharmaceutical industry, already risk averse, needs no reminding of the clear-cut, win-or-lose results of drug development. Merck's European head of licensing and external research, Margaret Beer, was no doubt mindful of this when she called for more collaborations with biotechs last week.

A number of early-stage biotechs are likely to beat a path to Merck's door with prospective licensing deals. Looking at Merck's current areas of research, for instance, Neurosearch AS of Denmark and Vernalis PLC of the U.K. have neuroscience projects that might be of interest to the U.S. firm, while Sweden's Medivir AB could push for deals on antiviral and cardiovascular drugs it has in early studies.

But don't expect a spate of risky acquisitions. Licensing deals are often the preferred route; they give the pharmaceutical partner control over the smaller company in practice, deterring other acquirers while allowing the licensee the flexibility to exit after committing a relatively limited cash outlay if things don't go as planned.

Vectura illustrates this point well. It is very likely that Novartis's exit was prompted by concerns over the uncertain U.S. regulatory pathway for generic asthma medicines, as well as more general worries over the the prospects for approval of combination asthma drugs in the absence of extensive safety studies.

Still, Vectura has other key respiratory projects in development, two of them licensed to Novartis. Antisoma, meanwhile, could still be taken over, given that its market capitalization is barely above its cash balance, but that outcome would come in spite of, rather than thanks to, a collaboration.

and

... from various sources



Biogen Idec (NASDAQ: BIIB) announced that 38 company-sponsored platform and poster presentations will be presented during the American Academy of Neurology's (AAN) 62nd Annual Meeting in Toronto, April 10 - 17, 2010. The AAN Annual Meeting is the world's largest gathering of neurologists.

Biogen Idec's neurology portfolio also includes Phase II PD candidate vipadenant (BIIB014). Two company-sponsored vipadenant posters are being presented at the Congress. The first poster shows significantly increased ON time (amount of time for which symptoms are controlled) in optimally treated patients with motor fluctuations (Efficacy of the Adenosine A2A Receptor Antagonist BIIB014 in Parkinson's Disease (PD) Patients with Motor Fluctuations - PD4.004). The second poster examines the safety and tolerability of vipadenant and showed that it was generally well tolerated (Safety and Tolerability Profile of the Adenosine A2A Receptor Antagonist BIIB014 as an Adjunct Treatment in Parkinson's Disease (PD) Patients with Motor Fluctuations - PD4.005). The data demonstrated in these studies justify further clinical development in patients with moderate-to-late stage PD.

Vipadenant (BIIB014) is a new, small molecule, adenosine A2A receptor antagonist in Phase II clinical development for Parkinson's disease (PD). It is believed that an A2A receptor antagonist may possess advantages over current PD therapies by compensating for the loss of dopamine signaling without the side effects of current dopaminergic treatments. Vipadenant is being developed under a collaboration agreement with Vernalis


a very frustrated

IDS

[dpeach] 01/4/2010 12:20

12th April results day then, see what that brings.........

[dpeach] 31/3/2010 15:02

fair point parsons the take up at 76p on offering 87p by SKB do at least offer abit of hope to pi's who also got it wrong.

[dpeach] 31/3/2010 15:00

and a week after the $3 million milestone though...

[jwoolley] 31/3/2010 14:01

I stand corrected Parsons....have not been watching this much over last couple of weeks and only took a quick peek to see whats going on.....but to be fair...the shares are dropping because of yet another poor RNS on Phase11b results.......which just so happens to come out a couple of weeks after the fundraising....

[jwoolley] 31/3/2010 13:20

Hey dpeach - It doesn't please that I was right to be honest, but as an old timer of this stock (British Biotech) it always seemed when they went to the market for more money, within weeks they release more bad news and the share price drops....it also looks like Glaxo sold some of there holding yesterday, wonder why??? They must of had the wink from management....sorry mate....but this company stinks....I hope your not at too much of a loss.....but there is a slight possiblity of it coming back....but myself...I can see the share price dropping further......good luck anyway...!!!

[dpeach] 31/3/2010 12:49

bloody big gap between 63-75p though

[dpeach] 31/3/2010 10:41

jwoolley if you are out there... congrats you were right on this

[dpeach] 31/3/2010 10:37

wouldn't have thought the fee would cover the loss as bought 45% if I remember correctly

[leadingladies] 31/3/2010 10:27

The thing I struggle to understand about this situation is : Are the co. that underwrote the share placing at 75p now kicking themselves or consoling themselves given there fat fee associated with underwriting the offer covers the losses in share value since ?

[dpeach] 31/3/2010 10:12

oversold - due a bounce (trading very thin too)

[dpeach] 30/3/2010 11:20

i'm loving this 'shareholder value'

[spec97] 24/3/2010 10:37

It is extreme but the MMs just know that people will bail out and put their money elsewhere, and they are taking advantage of that.

[dpeach] 24/3/2010 08:32

that is just extreme....... overeaction

[thecynical1] 24/3/2010 08:17

have to feel sorry for anyone who got involved in the last fundraising.....

[thecynical1] 24/3/2010 08:15

right...now that share certificate is destined for the dartboard! ; ) wow, what a way to run a company into the ground......good luck all!

[the heed] 24/3/2010 08:04

down 20% over reaction i think...