Verona Pharma PLC Q4 2024 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Andrew Tsai - Jefferies LLC - Analyst : Hi, thanks. Good morning. Congrats on all the progress. It's just pretty awesome to see the launch progressing nicely. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 2:00PM, VRNA.OQ - Q4 2024 Verona Pharma PLC Earnings Call So my first question is the volume trends clearly look very healthy. So maybe a question on the pricing side as it relates to sales cadence. Can you just help us level set expectations for when you report Q1? EPS Next, can you help us somehow quantify how much impact there could be to sales with the insurance resets and deductibles that typically occur in Q1? And just to be clear, is it the gross net that gets affected and if so by how much, or is it the filled prescription side as well? Thank you.

Question: Andrew Tsai - Jefferies LLC - Analyst : Yeah, very good. And maybe I'll try to ask is how do you guys feel about 2025 consensus, which is about $254 million, and is it fair to assume you could break even this year?

Question: Andrew Tsai - Jefferies LLC - Analyst : Right. Thank you very much. Congrats again.

Question: Yasmeen Rahimi - Piper Sandler - Analyst : Good morning team and congrats on really an incredible launch. I guess the first question that I have is one that we all analysts are getting from many of our clients owning is given the outstanding launch, what are some of the headwinds that could be headed our direction? What are some of the risks that we're not foreseeing or anything that could happen and I would love, like I guess, what are the things that's keeping you guys up at night because, the growth chart looks beautiful. That's sort of one and question number two is around your thoughts around Europe, European filing? Help us understand like what is the market opportunity in, I think the UK and select countries. I think in the past pricing is substantially lower in Europe, like what led to wanting to really pursue that and how do we think about the opportunity there and I guess the cost needed to build out a sales force? Appreciate, sorry, multi-part question around that. So, thank you.

Question: Yasmeen Rahimi - Piper Sandler - Analyst : Thank you so much, David.

Question: Tiago Fauth - Wells Fargo - Analyst : Hey, thanks for taking the question and congrats on the progress. We've been getting a couple of questions on the duration of therapy because that's a key toggle for average revenue per patient here. In our channel checks we're not really hearing a lot about potential discontinuations and while still early, curious how to think about average duration like this, is there an upside to that six months average duration assumption? How can we think about that? Thanks. REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 2:00PM, VRNA.OQ - Q4 2024 Verona Pharma PLC Earnings Call

Question: Tiago Fauth - Wells Fargo - Analyst : Fair enough. Thanks again for taking the question.

Question: Thomas Shrader - BTIG, LLC - Analyst : Good morning. Congratulations. I was trying to get up the nerve to ask the break even question after one quarter, so thank you for asking. I have a couple of surveillance questions. Any common themes in the 45% who are not prescribing the drug, or any structural things you are working on? And then the nebulizer, how big a deal is the nebulizer? This is really a peak sales question. Are you building into patients that have a nebulizer, or are there significant numbers of patients who are adding a nebulizer to add this drug? Thank you.

Question: Raghuram Selvaraju - H.C. Wainwright & Co. - Analyst : Thanks so much for taking my questions and congrats really on the phenomenal progress with the launch. It's really very impressive. Firstly, I wanted to ask whether you see any underlying market dynamic trends emerging with respect to prescriber preferences regarding the deployment of Ohtuvayre, especially now that we've gotten a little bit further into the commercial trajectory? And in particular, if you can comment on whether you expect the proportion of patients on Ohtuvayre who are also receiving tri-therapy to increase over time or remain constant and then also with respect to the ex-US picture. I was just wondering if there are territories beyond EU and Greater China that you believe are likely to be particularly lucrative for entering and what your strategic plans to target those territories and if you could also perhaps comment on the pricing situation in Greater China? what the pricing dynamics look like in Macau? now that the product has been approved there just so we can get a bit of a handle on what performance Nuance might be able to realize with the drug once it's available? Thank you.

Question: Raghuram Selvaraju - H.C. Wainwright & Co. - Analyst : Thank you very much.

Question: Joon Lee - Truist Securities - Analyst : Hey, thanks for the updates and for taking our questions. We spoke with several pulmonologists, and there seems to be a wide range of prescription reimbursement rates ranging from, over 90% to less than half for some pulmonologists. You should help us understand some of the pushes and pulls on reimbursement and what you are doing to REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. FEBRUARY 27, 2025 / 2:00PM, VRNA.OQ - Q4 2024 Verona Pharma PLC Earnings Call improve this? And just a clarification question on European partnership. Is it your plan to have some claw back clause like the one you have a Nuance, in case someone else may emerge that may want the the global right? Thank you.

Question: Joon Lee - Truist Securities - Analyst : Thank you.

Question: Boobalan Pachaiyappan - Roth Capital Partners, LLC - Analyst : Good morning. Can you hear me okay?

Question: Boobalan Pachaiyappan - Roth Capital Partners, LLC - Analyst : Hi. Okay, thanks for that. So I just have a couple of questions. So one of them focusing on the refill process. So as more and more patients are going for refill, so I'm wondering, how does the process work in the real world setting? So do patients have to take spirometry tests or anything just to, make sure they are getting some benefit in terms of when they take the drug or, when they call the doctor asking for prescription and when the doctor asked what kind of symptom improvements are you seeing? So are there specific symptoms that get improved with Ohtuvayre usage? That's the first one. And the second, are there any side effect profile, especially the ones that are listed in the FDA label, or physicians seeing any of those, including the psychiatric events that are listed in the label? Are there any instances of those side effects, recurring in these patients in real world setting?

Question: Boobalan Pachaiyappan - Roth Capital Partners, LLC - Analyst : Thank you very much.