Vernalis's first half revenues jump

Vernalis, a development stage pharmaceutical company, saw first half losses halve on the back of a sharp rise in revenues, driven by a significant increase in collaboration income.

Loss for the period was slashed to £3.2m (2011: £7.0m) on revenues of £5.9m, up 365 from £4.3m for the same period the previous year.

Revenues comprised income of £2.0m (2011: £2.1m) from the supply of frovatriptan active pharmaceutical ingredient to Menarini and collaboration income (including deferred revenue) of £3.9m (2011: £2.2m).

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Frovatriptan revenue for the first six months of 2012 decreased by 9% over the period due largely to a weakening of the euro against sterling over the period.

Collaboration income in 2012 increased by £1.7m due to a €0.5m milestone from one of the Servier collaborations, together with revenue from additional research collaborations secured at the beginning of 2012.

Cost of sales for the six months was flat at £0.9m and included supplies of migraine treatment frovatriptan and the continued amortisation of the frovatriptan intangible asset.

The debt free firm boasted a strong balance sheet with £84.5m cash resources at the period end.

Research and development expenditure for the six months was £6.4m (2011: £6.6m).

Ian Garland, Chief Executive Officer, said: "We had a very successful start to the first half of 2012, with the previously announced exclusive Tris licensing deal and associated fund raising. Since then Tris has initiated development work and the first three programmes are advancing well.

"We have progressed well in research where we secured further new collaborations and achieved an increase in revenues. The outlook for the remainder of 2012 and beyond is positive, underpinned by our Tris collaboration, strong balance sheet, royalty stream, NCE pipeline and research platform."

The share price rose 2.2% to 23.25p by 10:52.

NR