Verona Pharma plc (VRNA): A Bull Case Theory

We came across a bullish thesis on Verona Pharma plc (VRNA) on Capital Employed’s  Substack by Patients Capital Management. In this article, we will summarize the bulls’ thesis on VRNA. Verona Pharma plc (VRNA)’s share was trading at $91.53 as of 3^rd July.

Verona Pharma, a UK-based biopharmaceutical company, is advancing a standout therapeutic with its lead asset, Ohtuvayre, poised to redefine treatment for COPD and related respiratory diseases. The most compelling data point is patient feedback: individuals using Ohtuvayre report feeling noticeably better, which is critical in COPD where managing daily wellbeing matters most. Ohtuvayre’s non-steroidal mechanism means it can be safely combined with all existing COPD medications, creating effectively zero competition and addressing a major unmet need by avoiding the downsides of chronic steroid therapies.

Beyond COPD, Verona Pharma retains significant upside from potential indications in non-CF bronchiectasis and asthma, which remain largely unpriced in current valuations and could offer meaningful long-term growth—serving as optionality embedded in the investment thesis.

Strategically, the company is positioning for partnerships by developing dry powder inhaler (DPI) and metered dose inhaler (MDI) formulations, creating a clear window for larger pharmaceutical companies to engage in due diligence or acquisition discussions.

Importantly, Verona Pharma carries no near-term financing overhang, eliminating a common investor concern and making potential deal outcomes even more impactful. Despite a strong rally in the stock, the market still appears to underappreciate Verona Pharma’s potential: analysts are currently modeling peak sales of around $2.5 billion, even though the nebulized version alone could realistically reach $4–5 billion. As sell-side estimates adjust quarterly to reflect this upside, the stock is likely to re‐rate.

Looking ahead, growing investor conviction and evolving shareholder base could provide deeper support for higher valuation levels. With differentiated clinical efficacy, broad strategic optionality, strong balance sheet, and significant valuation mispricing, Verona Pharma offers a compelling multi-catalyst investment opportunity in respiratory therapeutics.

Previously, we covered a bullish thesis on Teva Pharmaceutical Industries Limited (TEVA) by Kontra in May 2025, which highlighted the company’s transformation under CEO Richard Francis, strong free cash flow growth, and rising contributions from innovative drugs like Austedo and Uzedy. The company’s stock price has been stable with an approximate 0.7% gain since our coverage. This is because the thesis has yet to fully play out but remains valid given Teva’s ongoing operational momentum and valuation support. Patients Capital Management shares a similar view on Verona Pharma but emphasizes a more targeted bet on a single asset, Ohtuvayre, with blockbuster potential and strategic optionality in respiratory therapeutics.

READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock.

Disclosure: None. This article was originally published at Insider Monkey.