Verona Pharma's loss widens on extended development costs

Verona Pharma posted a widened pre-tax loss for 2014 in the run up to its lead compound's commercial development.The company posted a pre-tax loss of £3.8m for 2014, up from £2.8m a year earlier, as research costs swelled from £1.7m to £2.6m over the period.Development bore a new commercial formulation of RPL554, which is currently in phas1/11 clinical trials. The next installment of the study in chronic obstructive pulmonary disease patients is expected to report later in 2015, though data also suggests the drug has potential to treat cystic fibrosis.The company does not currently produce revenue, but it raised £14m in a share placing in March, which will go towards the development of RPL553 for severe chronic obstructive pulmonary disease, as well as covering administrative expenses."We remain confident that with multiple potential applications, each representing an attractive commercial opportunity, RPL554 has the potential to generate significant value for shareholders," said Chief Executive Officer Jan-Anders Karlsson in a statement.Shares in Verona were trading down 1.48% at 3.33p late Tuesday afternoon.