VRP.L Regulatory News (VRP)

3 Jun 2010 07:00

3 June 2010 Verona Pharma plc ("Verona Pharma" or the "Company") (AIM: VRP.L) AGM STATEMENT

Professor Michael Walker, CEO of Verona Pharma, will make the following statement at the Company's 2010 Annual General Meeting to be held today at the offices of Sprecher Grier Halberstam LLP, 5th Floor, One America Square, Crosswall, London EC3N 2SG at 11.30 a.m.

"In the twelve months since the last AGM Verona Pharma has seen significant progress in its drug development programmes.

"Highlights

* Successfully completed Phase I/IIa clinical trial of RPL554 and licensing discussions are progressing. * Conducting further studies for RPL554 to add value to the licensing package and strategically prepare the drug for further clinical trials. * VRP700 - regulatory documents have been finalised and awaiting submission to the appropriate regulatory and ethical authorities. * NAIPs - continuing to evaluate novel compounds from collaborative partners, to determine clinical potential as anti-inflammatory drug candidates. * Maintaining low burn rate, currently with approx. £3m in cash.

"Since successfully completing its Phase I/IIa clinical proof of concept trial of RPL554, leading to the issue of the quality assured report by the Centre for Human Drug Research ("CHDR"), discussions with potential licensing partners have been progressing. While discussions continue, we are adding value to the RPL554 licensing package by conducting further studies. Treatments for asthma and COPD are commonly delivered using a dry powder inhaler and we have conducted experimental studies to confirm that RPL554 can be administered in this form. In addition we are carrying out further clinical studies on the safety of RPL554 at higher doses, the duration of action with respect to bronchodilation, and the extent of its anti-inflammatory action. These additional studies are expected to increase the Company's Intellectual Property package concerning RPL554; in turn strengthening our position during licensing discussions and increasing RPL554's value.

"RPL554 has the potential to be used in chronic obstructive pulmonary disease ("COPD") - often referred to as smoker's disease. COPD kills 250 people an hour worldwide and is the 5th biggest killer globally. It is the only major cause of death that is increasing and, according to the British Lung Foundation, it is expected to be the third leading cause of death worldwide by 2020. There is currently no truly effective treatment for COPD and big pharmaceutical companies, including GlaxoSmithKline, Pfizer and AstraZeneca, are putting an increased emphasis on the COPD market. In view of the growing market and in order to add value to RPL554 we are planning to carry out a study on patients with established COPD in order to ascertain the bronchodilator effects and safety of RPL554 in sufferers of the disease.

"The clinical trial of our cough treatment, VRP700, has progressed, although slower than expected due to administrative delays. Details of the clinical trial study have been finalised and the regulatory documents are awaiting submission to the appropriate regulatory and ethical authorities by the medical clinic in Italy that is carrying out the study on the Company's behalf. The VRP700 trial will assess the anti-tussive (suppressive) effect of the drug in sufferers of chronic cough as a result of lung cancer and interstitial lung disease.

"With respect to the Company's NAIPs project, we have filed four new composition of matter patents in conjunction with our collaborative partners, GlycoMar Ltd and Glycores 2000 Srl. At this stage we are evaluating further novel compounds from our collaborative partners, to determine their clinical potential as anti-inflammatory drug candidates.

"I am pleased to report that we have continued to maintain a low burn rate, currently with approx. £3 million in cash.

"Overall we are pleased with the Company's progress over recent months and we are continuing to work towards the commercialisation of RPL554 as well as development of our Cough and NAIPs projects. The Company is frequently looking at new additional opportunities that could potentially enhance its intellectual property portfolio. We look forward to the future with confidence."

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Enquiries

For more information please contact: Professor Clive Page 020 7863 3300 Chairman, Verona Pharma plc Barry Saint / Tim Redfern / Esther Lee 020 7071 4300 Evolution Securities Limited (Nominated adviser and broker)

Gemma O'Hara/Siobhra Murphy 020 7562 3350 078 2577 3710 Bishopsgate Communications Notes to Editors

About Verona Pharma plc (www.veronapharma.com)

Verona Pharma plc (AIM:VRP) is an AIM-quoted life sciences company dedicated to the research, discovery and development of new therapeutic drugs for the treatment of allergic rhinitis (hay fever) and other chronic respiratory diseases, such as asthma and chronic obstructive pulmonary disease (COPD), as well as chronic inflammatory diseases.

The Company currently has three potential drug treatments under development and continues to look for other possible drug development opportunities aimed at the respiratory and inflammatory diseases markets.

Globally, treatment of these diseases cost an estimated US$20 billion per annum. Despite such diseases being among the most prevalent diseases in the industrialised world, many of the current treatments have unwanted side effects, and/or limited effectiveness.

Verona Pharma was admitted to AIM in September 2006, and is run by two world experts in pharmacology and drug discovery. Dr. Michael Walker is Emeritus Professor of Anaesthesiology, Pharmacology and Therapeutics at the University of British Columbia, and a founder of other biotech, and biotech related companies. Chairman Dr Clive Page is a Professor of Pharmacology at King's College London, and an internationally-recognised authority in lung diseases and inflammation.

Verona Pharma is also seeking to develop an anti-tussive drug that works to suppress the generation of a cough signal at the nerve endings in the lungs. The Company's longer term focus is to develop novel polysaccharides (NAIPS) as potential anti-inflammatory drugs for the treatment of respiratory allergies, asthma and other inflammatory diseases.