Vernalis Plc: Interim Results for the Six Months Ended 30 June 2006
September 12 2006 - 2:00AM
PR Newswire (US)
- Vernalis Delivers on Significant Clinical Milestones and
Establishes Commercial Operation - WINNERSH, England, Sept. 12
/PRNewswire-FirstCall/ -- Vernalis plc (LSE:VERLSE:Nasdaq:LSE:VNLS)
today announced its interim results for the six months ended 30
June 2006. Highlights -- U.S. commercial business fully operational
detailing Apokyn(R) and Frova(R) -- Strong financial position with
closing cash of 50.9 million pounds sterling -- Losses reduced at
19.4 million pounds (2005: 20 million pounds) -- Frova(R)
supplemental New Drug Application (sNDA) submitted to US FDA for
the prevention of menstrual migraine (MM) -- V1003 (partial opioid
agonist) meets primary end point in Phase IIa study for the
management of post-operative pain -- Significant progress towards
initiation of four further clinical trials in H2 2006 -- V1512
(methylester of levadopa) Phase III study in Parkinson's disease --
V2006 (A(2A) antagonist) Phase II study in Parkinson's disease --
V24343 (CB(1) antagonist) Phase I study in obesity -- Hsp90 (Hsp90
inhibitor) Phase I study in cancer -- Entered into an agreement
with Pfizer to sub-lease approximately half of premises at Granta
Park, Cambridge Simon Sturge, chief executive officer of Vernalis,
commented: "Vernalis is continuing to show substantial progress
toward becoming a self-funding, sustainable R&D driven
commercial business. Establishing our U.S. operation with the
successful launch of Apokyn(R) and completing the Frova(R) clinical
trials for the short-term prevention of menstrual migraine were
significant achievements. The second half of 2006 is expected to
have substantial news flow as we progress our drug candidates
through the clinic and boost our product revenues." U.S. Commercial
Operation Fully Operational During the first six months of 2006
Vernalis' North American commercial business became fully
operational and is now marketing the Company's Parkinson's disease
drug, Apokyn(R) (apomorphine hydrochloride injection), as well as
co-promoting its migraine drug, Frova(R) (frovatriptan succinate)
2.5 mg tablets alongside its partner, Endo Pharmaceuticals (Endo).
Apokyn(R) Vernalis' U.S. commercial operation has established its
credibility through a significant increase in new prescriptions for
Apokyn(R) following its re-launch in January 2006. However, gross
sales for the first six months of 2006 of $2.3 million are somewhat
below initial expectations because of lower levels of repeat
business due to an under-reporting of patients who had discontinued
their treatment during the period prior to acquisition by Vernalis.
The lower sales in H1 2006 mean that, while we still believe gross
sales for the full year will be within the guidance initially
provided of $6 million - $7.5 million, we would now expect them to
be at the lower end of this range. Net sales for the period, after
provisions, were $1.8 million. The substantial growth in new
business, along with the new marketing initiatives including the
Nurse Support Programme (The APOKYN(R) Circle of Care(TM)) and the
introduction of product sampling, gives us considerable confidence
in the potential of Apokyn(R). Frova(R) In May 2006 Vernalis
completed the final Phase III pivotal efficacy study in MM patients
who had failed on acute therapy, aimed at obtaining approval for
Frova(R) for use as an intermittent, short-term preventative
treatment for MM. This study achieved its primary end point and,
together with the Phase III efficacy and safety studies previously
conducted, resulted in the submission of the sNDA to the FDA. If
the sNDA is successful, Vernalis expects FDA approval in mid-2007.
Development Portfolio Update Pain Franchise -- V1003 (partial
opioid agonist) - Achieved the primary endpoint in a Phase IIa
study in acute post-operative pain. Vernalis is now working with
its partner, Reckitt Benckiser, to identify the most appropriate
development programme for nasal delivery of buprenorphine. -- V3381
(dual NMDA antagonist/MAO-A inhibitor) - In August 2006, Vernalis
started a Phase IIa trial in patients with neuropathic pain
resulting from long-standing diabetes. Neurology Franchise -- V1512
(methylester of levadopa) - This potential treatment for
Parkinson's disease has completed Phase II studies with a Phase III
study expected to begin in H2 2006. -- V10153 (thrombolytic) -
Phase IIa trial in acute ischaemic stroke is on-going with the aim
to determine whether V10153 can be clinically effective in patients
up to 9 hours after the occurrence of a stroke. The trial is
targeted to complete patient enrolment in H2 2006. -- V2006 (A(2A)
antagonist) - A series of Phase I trials has been completed.
Vernalis' partner, Biogen Idec, is now responsible for moving
forward into Phase II trials which are expected to start in H2
2006. Other Programmes -- V24343 (CB(1) antagonist) - This potent
and selective cannabinoid receptor antagonist is a potential
treatment for obesity and related disorders. Vernalis expects to
start Phase I testing in overweight and mildly obese volunteers in
H2 2006. -- Hsp90 (Hsp90 inhibitor) - Vernalis' partner, Novartis,
has selected a clinical development candidate in this oncology
programme. Phase I testing is expected to start in H2 2006. --
MMPI-12 (metalloenzyme inhibitor) - Vernalis' partner, Serono, has
completed a Phase I study of this matrix metalloprotease inhibitor
looking at its therapeutic potential in inflammatory disorders
including multiple sclerosis. Financial Position Revenues increased
to 6.6 million pounds in the first six months of 2006 from 5.9
million pounds in the same period of 2005. In addition, Vernalis
reduced its loss before taxes to 19.4 million pounds during the
first half of 2006 as compared to 20.0 million pounds in the same
period of 2005. Following a successful fund raising completed at
the end of 2005, Vernalis' cash resources at the end of June 2006
totalled 50.9 million pounds. Simon Sturge and Tony Weir, CEO and
CFO of Vernalis respectively, will today host an analyst / investor
presentation and conference call at 9:00 am BST to discuss the
interim results. This may be accessed by dialling: +44(0) 1452
541076, and quoting 'Vernalis conference call.' A replay facility
will be available for 7 days by dialling: +44(0) 1452 550000, with
the access code: 5493221# Enquiries: Brunswick Group Jon Coles
Justine McIlroy +44 (0)20 7404 5959 About Vernalis Vernalis is a
speciality bio-pharmaceutical company focused on products marketed
to specialist neurologists. The company has two marketed products,
Frova(R) and Apokyn(R), and a development pipeline focused on
neurology and central nervous system disorders. The company has
seven products in clinical development and development
collaborations with leading, global pharmaceutical companies
including Novartis, Biogen Idec and Serono: Product Indication
Phase Phase Phase Registration Market Marketing I II III Rights
Apokyn(R) Parkinson's x North Disease America Frova(R) Migraine x
US milestones & royalties - Endo(EU - royalties) Frova(R)
Menstrual x US Migraine milestones Prevention & royalties -
Endo(EU - royalties) V1512 Parkinson's x World Wide Disease (excl.
Italy) V10153 Ischaemic x World Wide stroke V1003 Acute Pain x US
Profit share Option Reckitt Benckiser V3381 Neuropathic x World
Wide Pain V2006 Parkinson's x US Disease Co-promotion Biogen Idec
MMPI Multiple x None - Sclerosis royalty (Serono) Vernalis has
established a U.S. commercial operation to promote Apokyn(R) and
co-promote Frova(R) alongside its North American licensing partner,
Endo Pharmaceuticals, progressing the company towards its goal of
becoming a sustainable, self-funding, R&D-driven, speciality
bio-pharmaceutical company. For further information about Vernalis,
please visit http://www.vernalis.com/. Vernalis Forward-Looking
Statement This news release may contain forward-looking statements
that reflect the Company's current expectations regarding future
events including the clinical development and regulatory clearance
of the Company's products, the Company's ability to find partners
for the development and commercialisation of its products, as well
as the Company's future capital raising activities. Forward-
looking statements involve risks and uncertainties. Actual events
could differ materially from those projected herein and depend on a
number of factors including the success of the Company's research
strategies, the applicability of the discoveries made therein, the
successful and timely completion of clinical studies, the
uncertainties related to the regulatory process, the ability of the
Company to identify and agree beneficial terms with suitable
partners for the commercialisation and/or development of its
products, as well as the achievement of expected synergies from
such transactions, the acceptance of Frova(R) and Apokyn(R) and
other products by consumers and medical professionals, the
successful integration of completed mergers and acquisitions and
achievement of expected synergies from such transactions, and the
ability of the Company to identify and consummate suitable
strategic and business combination transactions. 1. Strategy and
operational review Vernalis' strategic goal is to become a
sustainable, self-funding, R&D driven speciality
bio-pharmaceutical company primarily focused on drugs for the
treatment of neurology and CNS disorders. The Company has two
marketed products, a pipeline of seven clinical drug candidate
programmes as well as a strong research capability that expects to
add two clinical programmes to its portfolio in H2 2006. Vernalis
has established a commercial operation in North America to market
Apokyn(R) and co-promote Frova(R) alongside its partner Endo, as
well as to promote other products that it is developing in- house
or may acquire. Marketed Products Apokyn(R) - Advanced Parkinson's
Disease Apokyn(R) is the only acute, intermittent therapy available
in the U.S. for the treatment of immobilising "off" episodes
associated with advanced Parkinson's disease. It is administered,
as needed, by means of an injector pen to treat periods of
immobility in people with advanced disease. In April 2004,
Apokyn(R) received FDA approval with Orphan Drug designation to
treat advanced Parkinson's disease patients in the U.S. who
experience the severe "on/off" motor fluctuations that are
unresponsive to other oral Parkinson's disease therapies.
Approximately 112,000 patients with Parkinson's disease experience
such "off" episodes despite optimal oral PD therapy. Apokyn(R) was
launched in the U.S. in July 2004 and Vernalis acquired the North
American commercial rights from Mylan in November 2005. Mylan
stopped promoting Apokyn(R) in July 2005. When Vernalis re-launched
this promotion-sensitive product in February 2006, new
prescriptions had diminished to almost zero. Apokyn(R) is sensitive
to promotion due to patients' requirement for close medical
supervision during the initial administration in order ensure that
each individual patient is individually titrated to their optimal
dose and to minimise the risk of first dose side effects. During
the first half of 2006, Vernalis established several marketing
initiatives as part of its Apokyn(R) re-launch strategy. Vernalis
has worked closely with physicians to communicate the benefits of
Apokyn(R) and reduce the barriers that prevent patients from
starting to use the product. These efforts include a nurse support
programme (The APOKYN(R) Circle of Care(TM)) where nurses assist
physicians with the initial titration and may also visit patients
in their home to ensure that they are comfortable using the drug
and gaining the maximum benefit. In addition, Vernalis has
introduced a sampling programme making it easier for the physician
to initiate a patient and help ensure the patient will benefit from
the drug prior to having incurred any expense. Vernalis expects
these types of activities to begin to impact levels of new
prescriptions approximately three months after introduction. As a
result, prescriptions initially remained at the low levels
inherited from Mylan during the early part of the year, but have
begun to increase substantially in recent months. Gross sales in H1
2006 were $2.3 million and are expected to be at the lower end of
the initial guidance of $6 million to $7.5 million for the full
year. Apokyn(R) is indicated for the acute, intermittent treatment
of hypomobility or "off" episodes associated with advanced
Parkinson's disease. It is used as an adjunct to other PD
medications. Apokyn(R) is associated with severe nausea and
vomiting and should be given with a concomitant antiemetic
(trimethobenzamide). Frova(R) - Acute Migraine Frova(R) is a
selective 5-HT(1B/1D) receptor agonist approved as an acute oral
treatment for migraine headache and its associated symptoms.
Frova(R) is a triptan and is distinguished from other triptans by
its long half-life. Vernalis has licensed North American rights for
Frova(R) to Endo who reported net sales of the product of $20
million for H1 2006. Vernalis has co-promoted Frova(R) in the U.S.
with Endo since February 2006. In Europe, frovatriptan is marketed
in twelve countries by Menarini. The drug was approved throughout
the then 15 member states of the European Union via the mutual
recognition procedure in January 2002. In the first half of 2006
Menarini launched frovatriptan in Slovakia (January 2006), Finland
(March 2006), Czech Republic (June 2006) and Slovenia (June 2006).
In Germany and Italy market share has grown to approximately 10 per
cent and in excess of 12 per cent, respectively, of the overall
triptan market. Frova(R) is approved for the treatment of migraines
in adults. The most common adverse events include dizziness,
fatigue, paresthesia, flushing, and headache. Development Portfolio
Pain Franchise Frova(R) - Prevention of Menstrual Migraine Vernalis
has completed a series of studies aimed at obtaining approval for
Frova(R) for the intermittent, short-term prevention of MM and
Vernalis' partner, Endo filed an sNDA with the FDA in July 2006.
Vernalis expects an approximate 10-month review for the sNDA with a
potential approval in mid- 2007. If approved by the FDA for this
new indication, Vernalis will receive a $40 million milestone
payment from Endo. The Frova(R) sNDA is supported by data from four
clinical studies, the final of which, a second efficacy study,
reported in May 2006. Patients in the study had previously failed
on other acute therapies and were treated for three peri-menstrual
periods (PMPs). The primary endpoint was the number of menstrual
migraine-free PMPs. Both once and twice-daily dose regimens of
Frova(R) demonstrated efficacy, with statistical significance
compared to placebo (p