Transformational deal completed, the evolution continues for Vernalis

Vernalis plc announced its results for the year ended 31 December 2011.

Ian Garland, Chief Executive Officer, commented, “The transformation of Vernalis has continued. Our licensing deal with Tris, announced in February, together with the £65.9 million equity fundraising are important steps to transform the company into a diversified, profitable and self-sustaining specialty pharmaceutical company. The outlook for 2012 remains very positive with progress expected under the Tris collaboration, where development work has already started on three combination products, as well as our existing programmes and research collaborations.”

Operational Highlights
The licensing deal with Tris Pharma, Inc. completed in February 2012 giving Vernalis exclusive rights to Tris’s extended release technology for use in the US prescription cough/cold market. The equity fundraising achieved £65.9 million (net of expenses) and was oversubscribed. Funds are available for further late-stage in-licensing. Vernalis will pay Tris to develop up to six unique extended release (ER) equivalents to existing immediate release (IR) prescription cough/cold treatments.
Vernalis will own all approved products and will commercialise them in a US market with approximately 35 million prescriptions annually, potentially worth over $2 billion. Development work has already been initiated on three combination products. This accelerates Vernalis’ evolution to self-sustained specialty Pharma Company.

Pipeline Activity
Frovatriptan for migraine produces a royalty income of £6.5 million and approval has been received to market frovatriptan in Russia. It has also been launched in South Korea by SK Chemicals.

Research Collaborations
New collaborations have been announced in January 2012 with Genentech and with Servier, in addition to two existing collaborations with Servier.

Financial Highlights
Revenues remain robust with £12.2 million of revenues, Menarini frovatriptan royalties at £6.5 million. A strong balance sheet positions the company for future growth and cash resources are at £24.7 million at 31 December 2011.