Verona Pharma Reports $103.1 Million Revenue and $11.9 Million Net Income in Q2 2025

Verona Pharma plc reported significant financial developments in its latest 10-Q filing for the quarter ending June 30, 2025. The company generated total revenue of $103.1 million for the quarter, primarily driven by product sales of $102.9 million from its recently launched drug, Ohtuvayre, which was approved by the FDA for the maintenance treatment of chronic obstructive pulmonary disease (COPD) in June 2024. This marks a substantial increase from the previous year, as the company had no product sales during the same quarter in 2024. For the first half of 2025, total revenue reached $179.4 million, compared to zero revenue in the first half of 2024.

Operating expenses for the second quarter of 2025 totaled $89.8 million, up from $68.4 million in the same period last year. This increase was largely attributed to higher selling, general, and administrative expenses, which rose to $72.1 million from $49.0 million, reflecting the costs associated with the launch and commercialization of Ohtuvayre. Research and development expenses decreased to $13.0 million from $19.4 million, primarily due to the absence of prior year accruals related to milestone payments. The company reported a net income of $11.9 million for the quarter, a significant turnaround from a net loss of $70.8 million in the same quarter of 2024.

Strategically, Verona Pharma is in the process of being acquired by Merck Sharp & Dohme LLC in a transaction valued at approximately $10 billion, expected to close in the fourth quarter of 2025, pending regulatory approvals and shareholder consent. This acquisition is anticipated to enhance Verona's capabilities in developing and commercializing its product candidates. Additionally, Verona has entered into a collaboration with Nuance Pharma to develop ensifentrine in Greater China, with Ohtuvayre already receiving approval in Macau.

Operationally, Verona Pharma has made strides in expanding its market presence. The company has submitted marketing authorization applications for Ohtuvayre in the UK and EU, and it is preparing to initiate a Phase 2b trial for a fixed-dose combination of ensifentrine with glycopyrrolate for COPD treatment. As of June 30, 2025, Verona reported cash and cash equivalents of $438.0 million, an increase from $399.8 million at the end of 2024, which the company believes will support its operations for at least the next 12 months.

Looking ahead, Verona Pharma acknowledges the challenges it faces, including the need for additional funding to support ongoing development and commercialization efforts. The company has indicated that if the acquisition by Merck does not proceed, it may need to seek alternative funding sources to continue its operations and product development. The company remains focused on the successful commercialization of Ohtuvayre and the advancement of its pipeline, which includes potential treatments for bronchiectasis and other respiratory diseases.