Caligan picks up a stake in Verona Pharma, seeing an opportunity to generate more value

Verona Pharma is a clinical stage biopharmaceutical company that focuses on the development and commercialization of therapies for the treatment of respiratory diseases with unmet medical needs.

The company's product candidate is ensifentrine, an inhaled and dual inhibitor that acts as both a bronchodilator and an anti-inflammatory agent in a single compound.

Ohtuvayre was recently approved by the FDA for maintenance treatment of chronic obstructive pulmonary disease (COPD).

When Caligan announced its position last month , the stock was trading at $ 33.40 per share or a $2.5 billion enterprise value.

If Ohtuvayre continues to move through trials for NCFB and gets traction with patients, Caligan thinks that Verona Pharma could be worth 7 -times its valuation, or $ 218 per share.