GSK comments underscore Verona as potential target, says H.C. Wainwright

H.C. Wainwright analyst Raghuram Selvaraju says recent comments from GSK‘s commercial head appear to indicate that Verona Pharma (VRNA) could be an attractive takeover target. In an interview with the Financial Times and in comments published by The Sunday Times late last week, GSK Chief Commercial Officer Luke Miels indicated that the company would be seeking acquisitions in the $2B range over the next six months to boost its pipeline. In particular, Miels highlighted assets in the respiratory and autoimmune disease arenas and indicated that GSK would preferentially focus on single-asset or dual-asset entities, the analyst tells investors in a research note. The firm believes these statements “underscore the potential attractiveness” of Verona Pharma to GSK as an acquisition target, given Verona’s current market cap of roughly $1.6B and the “mature, risk-mitigated status” of its lead asset ensifentrine. Wainwright keeps a Buy rating on Verona with a $32 price target.