Jim Cramer Notes Verona Pharma plc (VRNA) “Loses a Lot of Money”

Insider Monkey
05-30

We recently published a list of Jim Cramer Put These 14 Stocks Under the Microscope. In this article, we are going to take a look at where Verona Pharma plc (NASDAQ:VRNA) stands against other stocks that Jim Cramer discusses.

Answering a caller’s query about Verona Pharma plc (NASDAQ:VRNA), Cramer stated:

“That stock is a rocket ship. Again, very very speculative, because it loses a lot of money. Does have a couple things in the pipe that people like, but also has a huge amount of insider selling, frankly.”

A patient in a clinic, taking a medication dose from a nebulizer to treat a respiratory disease.

Verona Pharma (NASDAQ:VRNA) is a biopharmaceutical company developing treatments for respiratory diseases with limited treatment options. The company’s lead therapy, Ohtuvayre, is designed to provide bronchodilation and anti-inflammatory benefits for conditions like COPD, cystic fibrosis, and asthma. Buckley Capital Advisors stated the following regarding Verona Pharma plc (NASDAQ:VRNA) in its Q1 2025 investor letter:

“Verona Pharma plc (NASDAQ:VRNA) has developed a product called ensifentrine (Ohtuvayre), a bronchodilator and anti-inflammatory agent for maintenance treatment of COPD. COPD, more commonly known as smoker’s lung, is caused by pollution or smoking. Diagnosis of COPD lowers life expectancy by approximately 6 years. Symptoms of COPD are shortness of breath, cough, wheezing, and sputum. COPD affects approximately 400 million people worldwide, with 8.6m people treated in the United States.

We began following VRNA after the science had been de-risked in late 2022. We believed at the time that VRNA had a novel mechanism in COPD, a disease with no incremental new therapy in the last 20 years. We and others believed VRNA would likely be bought out, which ultimately did not happen. VRNA thus became an “anti-merger arbitrage” special situation stock, with high turnover in its shareholder base: In the lead-up to Verona’s FDA approval (PDUFA) date in June 2024, the stock declined sharply from the low $20s to $12.”

Overall, VRNA ranks 7th on our list of stocks that Jim Cramer discusses. While we acknowledge the potential of VRNA as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VRNA and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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