Vernalis (VER) chief executive Ian Garland warned last summer that the Aim-traded biotech outfit's financial results would be "lumpy" until the launch of Tuzistra, a new slow-release cold and cough product, in mid-2015. And so it has turned out: in 2014 royalty income from migraine treatment Frovatriptan dipped to £1.7m (from £4.1m in the second half of 2013), while income from research collaborations jumped to £3.8m (from £2.3m in the second half of 2013). Overall, group sales fell 16 per cent.
The US Food and Drug Administration (FDA) should give Tuzistra the go-ahead in April, but Vernalis is also working on four other cough and cold programmes in the meantime. Mr Garland said investors could receive "up to 10 updates" on these new drugs over the next 12 to 18 months.
Vernalis has changed its financial year to better coincide with the US cough and cold season. Mr Garland says the season runs roughly between October and March, so a December year-end split the key trading period in two. Analysts at broker N+1 Singer expect losses of £16.4m for the 18 months to 30 June - the new financial year-end - giving losses per share of 3.2p.
| VERNALIS (VER) | ||||
|---|---|---|---|---|
| ORD PRICE: | 50p | MARKET VALUE: | £221m | |
| TOUCH: | 49-51p | 12-MONTH HIGH: | 53p | LOW: 29p |
| DIVIDEND YIELD: | nil | PE RATIO: | na | |
| NET ASSET VALUE: | 18p | NET CASH: | £71m | |
| Year to 31 December | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2010 | 14.2 | -22.1 | -21.1 | nil |
| 2011 | 12.2 | -10.6 | -8.9 | nil |
| 2012 | 14.6 | -6.8 | -1.4 | nil |
| 2013 | 14.1 | -6.3 | -0.9 | nil |
| 2014 | 11.9 | -5.2 | -0.7 | nil |
| % change | -16 | - | - | - |
Ex-div: na Payment: na | ||||
