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Verona heads stateside

The respiratory biotech company is listing new shares on Nasdaq
May 2, 2017

In its quest to develop novel respiratory drugs, investors always knew that Verona Pharma (VRP) would have to return to the market for more funds. That management has decided to raise some of that capital in the US has come as a pleasant surprise.

IC TIP: Buy at 133p

The Alternative Investment Market (Aim)-traded group is to list 5.8m American Depository Shares (ADS) at $13.50 on the biotech-friendly Nasdaq index, in addition to 1.3m shares at 132p on Aim. The aggregate proceeds of the listing are expected to be in the region of $80m, which the group will use to fund the development of its respiratory drugs pipeline. Verona's lead candidate, RPL554 is soon to begin the expensive final stage of clinical trials. If successful, this drug will be the first non-steroid bronchodilator for treatment of severe chronic obstructive pulmonary disease.