Wedbush says time to buy Verona Pharma, reaction to 3 day combo Phase 2 overdone
Wedbush analyst analyst is Liana Mousssatos notes that Verona Pharma is developing Ensifentrine as a treatment candidate for respiratory diseases such as COPD, CF and potentially asthma, and multiple exploratory Phase 2 trials for COPD have been conducted with the latest testing this new mechanism on top of dual LAMA/LABA and triple background therapy. The analyst adds that topline results were reported and speculates the negative overreaction in stock value is due to the lack of statistical significance for the primary endpoint. While Moussatos acknowledges that lack of statistical significance is "annoying," she believes it is not a deal-breaker for approval. The analyst sees that while the high dose contributed to the lack of statistical significance for the primary endpoint, the low dose has a consistently positive effect in the various analyses and may be a dose used in a future Phase 3 trial. Moussatos considers the weakness to be a buying opportunity, and reiterates an Outperform rating and $56 price target on the shares.