Verona Pharma (VRNA – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst yesterday. Analyst Thomas Shrader from BTIG maintained a Buy rating on the stock and has a $83.00 price target.
Thomas Shrader has given his Buy rating due to a combination of factors, primarily focusing on the promising sales performance and strategic positioning of Verona Pharma’s Ohtuvayre. The drug’s initial sales figures have surpassed expectations, indicating strong market acceptance, especially given that 50% of patients prescribed the drug are not already on triple therapy. This suggests a significant opportunity for growth as the drug is being adopted even before exhausting generic options, highlighting its perceived value under the Medicare Part B framework.
Moreover, the ongoing combination trials with a LAMA are showing potential, as they could allow a substantial portion of patients to switch to the Verona combination without additional costs or changes to their routines. The company’s financial health is also robust, with a substantial cash reserve and a growing number of healthcare professionals prescribing Ohtuvayre. These factors, combined with the potential for additional intellectual property protection, underpin Shrader’s positive outlook and the increased price target for VRNA.
According to TipRanks, Shrader is a 4-star analyst with an average return of 4.9% and a 35.67% success rate. Shrader covers the Healthcare sector, focusing on stocks such as Arcturus Therapeutics, Denali Therapeutics, and Alector.
In another report released yesterday, Wells Fargo also maintained a Buy rating on the stock with a $93.00 price target.