Vernalis to revisit M&A after Frova data

By Mark Potter

LONDON (Reuters) - British biotechnology firm Vernalis Plc (VER.L: Quote, Profile, Research, Stock Buzz) will return to the acquisition trail later this year if results from a key clinical trial of its Frova migraine drug are successful, its chairman said on Wednesday.

Peter Fellner also told the Reuters Biotechnology Summit that Vernalis, built up from a string of small acquisitions, was ready to look at a larger, transforming deal as well.

"Later this year we would certainly be interested in attractive opportunities," Fellner said, adding Vernalis would focus on buying drugs in its specialist field of neurology, either ones in late-stage clinical trials or already on sale.

He said Vernalis, which announced a pause in its rapid expansion after its last deal in November, was waiting for results of a final stage clinical trial of Frova as a treatment for the prevention of migraines brought on by menstruation.

Vernalis, formed in part from the ashes of the fallen company British Biotech, believes a successful trial could transform prospects for Frova, which is already on sale in the United States as a treatment for migraines.

Vernalis would, in the wake of successful Frova data, consider paying for any deal with its shares, and would also look at larger transactions, Fellner said.

"Because Vernalis itself has developed quite significantly ... I think in future we would not only look at small specific deals, but we would be interested in larger, more transforming deals as well," he said, adding his aim was to build Vernalis into one of Europe's leading biotech firms.

MENSTRUAL MIGRAINE  Continued...