Verona Pharma (VRNA) investor relations material

Executive summary

• Entered into a $10 billion acquisition agreement with Merck, expected to close in Q4 2025, subject to customary approvals.

• Ohtuvayre (ensifentrine) approved by FDA for COPD in June 2024; U.S. launch began August 2024.

• Submitted marketing applications for Ohtuvayre in the UK and EU in mid-2025.

• Net income of $11.9 million for Q2 2025, first profitable quarter; accumulated deficit $567.1 million as of June 30, 2025.

• Ongoing dispute with Nuance Pharma over buy-back of Greater China license; discussions ongoing.

Financial highlights

• Q2 2025 revenue: $103.1 million, driven by $102.9 million in Ohtuvayre product sales.

• Six months ended June 30, 2025: $179.4 million total revenue, $174.2 million from product sales.

• Q2 2025 operating income: $13.3 million, compared to a $68.4 million loss in Q2 2024.

• Cash and cash equivalents: $438.0 million as of June 30, 2025, up from $399.8 million at year-end 2024.

• Selling, general and administrative expenses rose to $72.1 million in Q2 2025, up $23.1 million year-over-year, mainly due to commercial launch costs and share-based compensation.

Outlook and guidance

• Cash, anticipated product sales, and available term loan funding expected to cover operating and capital needs for at least 12 months.

• Future term loan advances contingent on commercial milestones and lender discretion.

• If Merck transaction does not close, may seek to license Ohtuvayre outside the U.S. and require additional funding.