Verona Pharma (VRNA) Jefferies London Healthcare Conference 2024 summary

Product launch and performance

• Ohtuvayre, a novel inhaled PDE3/4 inhibitor, launched in the US for COPD, showing strong early uptake with over 5,000 prescriptions and 2,200 prescribers within 14 weeks.

• Revenue for Q3 was $5.6 million, with expectations for continued growth into Q4 and 2025, and no anticipated seasonality impact.

• Initial prescriptions are mostly new patients, but refill rates are expected to increase and become a larger share of total scripts in 2025.

• Ohtuvayre is positioned to address a significant unmet need, with potential for blockbuster status at modest market penetration.

• The launch is outperforming previous COPD drug launches, surpassing Breztri and Trelegy in Q1 revenue.

Market strategy and growth drivers

• Growth in 2025 will be driven by expanding the prescriber base, increasing depth of prescribing, and enhanced direct-to-patient marketing.

• Physician feedback and patient experiences are leveraged to encourage adoption, with marketing efforts focused on case studies and patient stories.

• Direct-to-patient activities are being expanded through digital channels and in-office awareness campaigns.

• Ohtuvayre's inclusion in the GOLD guidelines provides further validation and may support broader adoption, especially among primary care physicians.

• The product is expected to be used earlier in the COPD treatment paradigm, shifting some patients away from steroid-based therapies.

Financials, reimbursement, and operations

• Specialty pharmacies maintain 2-3 weeks of inventory, with levels expected to remain stable as sales grow.

• Reimbursement is consistent with expectations, with simple prior authorizations and step edits for commercial and Medicaid plans.

• A product-specific J code will be effective January 2025, streamlining pharmacy adjudication and improving reimbursement efficiency.

• Gross-to-net came in below the expected 25%, with potential for further improvement as distribution remains specialty-focused.

• Cash flow break-even is projected at a $250–$300 million run rate, with no specific timeline provided.