VRP.L Regulatory News (VRP)

14 Jan 2010 07:00

14 January 2010 Verona Pharma plc ("Verona Pharma" or the "Company") New Year Progress Report on Verona Pharma plc

Verona Pharma plc, the AIM-quoted drug discovery Company, is pleased to update the market on the progress in the Company with respect to its recent fundraising, its most advanced project, RPL554, and its other two ongoing drug discovery projects.

HIGHLIGHTS

* Successfully raised £3.0 million (before expenses of £0.2 million) via a placing of new ordinary shares at the end of 2009, providing the Company with a strong financial position. * Received the final quality assured study report from the Centre for Human Drug Research ("CHDR") at Leiden University for its Phase I/IIa trial of RPL554. * Discussions with potential licensees for RPL554 are ongoing. * Four new patents related to novel compounds discovered under the Company's NAIPs project have been filed. * Regulatory documents for the proposed clinical trial of its cough treatment, VRP700, have been prepared and are in the process of submission to the appropriate authorities. The trial is expected to commence first quarter 2010. * The Company continues to look for additional opportunities to enhance its Intellectual Property portfolio.

Financial Position

Verona Pharma retains a strong balance sheet and cash position after it successfully completed a fundraising at the end of December 2009. The Company raised £2.8 million after expenses via a placing to further develop the Company's drug discovery portfolio.

RPL554

The Phase I/IIa trial of RPL554 was officially closed in November 2009 and this led to the completion of the finalized and quality assured report being issued by CHDR on January 8th 2010. As previously reported, the trial demonstrated that RPL554 produces clear clinical benefits in patients with asthma and allergic rhinitis with a good safety profile. The official completed report from CHDR is important for the Company's ongoing licensing efforts. With respect to licensing, the Company has received interest from major pharma companies and discussions are ongoing.

The Company is seeking the most appropriate partner to develop RPL554 in terms of their expertise in the respiratory area and having a good inhalation device and formulation skills. While the licensing activities are underway the Company continues to add value to the RPL554 project by conducting further development studies using some of the funds recently raised.

Novel Anti-Inflammatory Polysaccharides ("NAIPS")

The Company has filed four new composition of matter patents for products that have been discovered as a result of the collaboration between Verona Pharma and its contracted collaborative partner, GlycoMar Ltd. These novel products have been identified from a number of marine sources and have shown significant anti-inflammatory activity with clinical potential. This is a significant step forward for the project.

Cough Project

With respect to Verona Pharma's cough project, the Company has prepared regulatory documents that will be submitted to the EU as well as national and local authorities in Italy for a clinical trial of its compound, VRP700. This trial is essentially a proof-of-concept trial which if successful will initiate a sustained programme designed to maximise the clinical value of VRP700 as well as to discover a new generation of compounds with a similar mechanism of action. The mechanism is presumed to involve the suppression of a cough signal originating at sensory nerve endings located in the lungs. Cough is one of the most irritating, common medical complaints, but it can also be extremely debilitating - especially in patients with respiratory problems such as asthma, Chronic Obstructive Pulmonary Disease (COPD) and lung cancer - and at present there is no truly effective treatment and none given by inhalation.

Commenting on the trading statement, Dr. Michael Walker, Chief Executive Officer of Verona Pharma, said:

"We are delighted that all aspects of the Phase I/IIa study of RPL554 are now fully completed with the issue of the final report from the CHDR. We believe that this, along with our successful fundraising, has markedly strengthened our position and will aid us in achieving the best licensing deal possible for the Company.

"The filing of our four new patents arising from the NAIPs project has added value and solidity to our current portfolio. The funds raised at the end of last year will help us further expand this project as necessary.

"I am pleased that we are moving forward so rapidly with the cough project, since if the trial is successful, the Company will have shortened the time to potential licensing of this entire project."

--END-- For more information please contact: Professor Clive Page 020 7863 3300 Chairman, Verona Pharma plc Barry Saint/Tim Redfern/Esther Lee 020 7863 3300 Evolution Securities Limited Suzanne Johnson-Walsh/Gemma O'Hara 020 7562 3350 Bishopsgate Communications

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 other 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.

www.veronapharma.com Ticker symbol: VRP