Verona Pharmaceuticals (LON:VRP) have given shareholders a pleasing update at the start of the week.
The firm said that its Phase 2b clinical trial of nebulized Ensifentrine met its primary endpoint.
The four weeks trial, which is currently being undertaken is being studied within severe chronic obstructive pulmonary disease patients is now reaching its conclusion.
The drug was administered twice daily in combination with tiotropium, a treatment used in the management of chronic obstructive pulmonary disease and asthma.
Verona are currently trialling four different doses of the new medication, which are 0.375 milligram, 0.75 milligram, 1.5 milligrams and 3.0 milligrams.
Verona said the drug hit its “primary endpoint” for a dose-related positive effect on lung function when compared with a group taking a placebo that has no medical benefit.
“We are delighted with these results in symptomatic COPD patients already on steady-state maintenance treatment. These data bring clarity to planning the design, including dose selection, endpoints and background therapy, of our Phase 3 program. We expect Phase 3 trials to start in the third quarter of 2020,” said Verona Pharma CEO Jan-Anders Karlsson.
“We look forward to discussing these new and compelling data, together with the positive results from our previous clinical studies, in an End-of-Phase 2 meeting with the FDA planned for the second quarter,” he finished.
Verona build from November worries
At the start of November, the firm reported that it had widened its third quarter loss, which sent shares in red.
For the three months ended September 30, Verona’s pretax loss totaled £12.8 million, more than three times the £3.5 million loss posted the the year before.
The increasing costs in the Research and Development team was the main cause of the massive loss.
These costs inflated to £12.0 million from £5.3 million. Verona’s general & administrative costs also rose, jumping 43% to £2.0 million from £1.4 million.
A 28% increase in general & administrative costs to £5.9 million from £4.6 million also saw the loss widen for Verona.
Chief Executive Jan-Anders Karlsson said: “We are very pleased that our four-week phase 2b dose-ranging clinical trial with nebulized ensifentrine is progressing according to plan and that we have completed enrollment of over 400 symptomatic patients with moderate to severe COPD. We anticipate completing this study around the end of 2019. Informed by this and prior studies in around 850 subjects, we plan to advance into our phase 3 clinical trial program which we expect to commence in 2020 following an end of phase 2 meeting with the [US Food & Drug Administration.
However, it seems from the update today that the increased expenditure in research and development may have had long term benefits.
Shareholder of Verona would have been initially worried about the loss widening a few months back, however from today’s update there will be keen optimism to see how results perform.
Shares in Verone trade at 88p (+53.28%). 13/1/20 10:33BST.