Shares of Verona Pharma plc (NASDAQ:VRNA), a clinical-stage biopharmaceutical company focused on respiratory disease treatments, plummeted 5.95% in the pre-market trading session on Friday.
The stock's decline comes despite an analysis article suggesting that Verona Pharma is expected to break even in 2025 and become profitable in 2026, according to consensus estimates from industry analysts covering the company. The article highlights that analysts forecast an average annual growth rate of 59% for Verona Pharma to achieve profitability, which is considered optimistic.
However, the article also notes that Verona Pharma has a relatively high level of debt, with debt exceeding 92% of its equity. This high debt obligation increases the risk for investors in the loss-making company.