Ebb & Flow

Vernalis (LSE:VER) fell 25p (14%) to 157.5p on Monday after U.S. marketing partner Elan (ELN) said it expects to launch Frova frovatriptan in April. In its interim results report to June 30, 2001, VER had said, "If either the approval or launch of frovatriptan is delayed beyond early 2002, we may need to reduce our expenditure and R&D activities until we have secured further financing." The drug received U.S. approval for acute migraine in November, and VER stands to receive sales milestones as well as royalties (see BioCentury, Nov. 12, 2001).

"The coffers are expected to run dry by year end," said WestLB Panmure analyst Nick Staples, who sees VER as an attractive acquisition target...