Tara Bancroft, an analyst from TD Cowen, has initiated a new Buy rating on Verona Pharma (VRNA).
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Tara Bancroft’s rating is based on the promising early momentum of Verona Pharma’s Ohtuvayre, which has shown significant sales growth in a short period. The drug, a first-in-class inhaled dual PDE3/PDE4 inhibitor, addresses a critical need in the COPD treatment landscape by providing both bronchodilation and anti-inflammatory effects. Its unique mechanism and low competitive overlap allow for premium pricing and broad usage, making it a compelling addition to existing treatment regimens.
Furthermore, Bancroft highlights the potential for Ohtuvayre to achieve substantial market penetration, with key opinion leaders estimating that a significant portion of COPD patients could be candidates for this treatment. The drug’s early sales have outpaced expectations, and its potential to reach a multi-billion-dollar revenue stream is supported by its differentiated approach and ease of prescription. These factors contribute to the optimistic outlook and the Buy rating assigned to Verona Pharma’s stock.
Bancroft covers the Healthcare sector, focusing on stocks such as Geron, TG Therapeutics, and Lantheus. According to TipRanks, Bancroft has an average return of -18.2% and a 22.22% success rate on recommended stocks.
In another report released on April 22, Piper Sandler also maintained a Buy rating on the stock with a $76.00 price target.