Vernalis shares up 10% as Serono returns anti-inflammatory drugs

Shares in Vernalis rose 10% to 2.93 pence after a portfolio of compounds it licensed to Swiss firm Serono reverted to the UK drugmaker. Serono's new parent company, Merck KGaA, decided against progressing the anti-inflammatory agents in 2006, following a review of its pipeline priorities. The lead compound, V85546, is a selective MMP-12 inhibitor, that has successfully completed Phase I testing and is ready to start a Phase II program. The compound has been returned to Vernalis with a full data package that includes supporting pharmacology findings for a broad range of indications, as well as a back up program that includes a product candidate undergoing preclinical development. V85546 could be developed for the treatment of several inflammatory diseases including including chronic obstructive pulmonary disease, acute respiratory distress syndrome and multiple sclerosis, Vernalis noted.