Verona raises £44.7 million, which will finance COPD drug development

Verona Pharma (AIM: VRP) revealed today that it has successfully secured funding commitments to raise gross proceeds of around £44.7 million ($63.3 million), through a conditional placing with new and existing investors, including a number of specialist US, UK and European healthcare funds.

The placing was significantly oversubscribed, according to the Cardiff, Wales, based drug development company focused on first-in-class medicines to treat respiratory diseases.

The net proceeds of the placing are expected to fund RPL554 through a Phase IIb clinical trial in chronic obstructive pulmonary disease (COPD) patients and additional Phase II studies in both COPD and cystic fibrosis. Just last month, Verona announced positive headline data from a Phase IIa study on the bronchodilator effect of nebulized RPL554, administered on top of salbutamol and ipratropium bromide, for COPD.

MTS Securities is acting as the US placement agent and N+1 Singer is acting as the UK broker and nominated adviser in connection with the Placing. The Placing is not being underwritten.