How Wales missed out on £10bn success story

A firm backed by the Welsh Government at an early stage sold for £10bn last year. The only problem? Wales had already sold its 20% stake, reports Sion Barry

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VERONA Pharma is one of the success stories of UK science.

The firm develops treatments for patients with chronic lung and respiratory issues. It hit the jackpot in 2024 when its inhaled treatment for COPD, Ohtuvayre, was approved for use in the USA.

Chronic obstructive pulmonary disease is a huge market in the States. Pharmaceutical giant Merck swooped in and bought Verona for $10bn (around £7.5bn).

It was a huge payday for the shareholders who had stuck with the company since its early days on the Alternative Investment Market when it had a valuation of just £20m.

The Welsh Government had been one of those early shareholders, buying a 20% equity stake in exchange for giving the company £4.6m to invest. Yet by the time Verona Pharma hit the big time, Wales had sold its entire stake.

The Welsh Government's foray into life sciences investment had begun back in 2012.

The £50m Wales Life Sciences Investment Fund (WLSIF) launched by then economy minister Edwina Hart promised to bring life sciences firms into Wales, allow them to grow here and dangled the hope of a return for the taxpayer.

Some civil servants had reservations but the fund was launched in 2013 to a fanfare of upbeat projected promises on return. After a search, one bidder came forward to run the fund: Arthurian Life Sciences, which was chaired and majority-owned by Edwina Hart's ally Sir Chris Evans.

It made a number of investments, firstly into Merthyr-based Simbec Research for a total of £8m, which would later prove one of the few success stories for the Welsh fund amid a number of disappointments.