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.