Verona Pharma bags $650 million strategic financing

UK respiratory disease specialist Verona Pharma (Nasdaq: VRNA) and its wholly-owned subsidiary, Verona Pharma Inc (VPI) have entered into strategic financing agreements securing access to up to $650 million from funds managed by Oaktree Capital Management and OMERS Life Sciences, adding to a $400 million debt facility with Oxford Finance and Hercules Capital deal in January this year.

The new agreements provide non-dilutive capital and additional financial flexibility ahead of Verona Pharma’s planned US launch of ensifentrine and will support the company’s continued growth.

Under the terms of the debt facility, VPI is drawing $55 million at closing, and may draw, subject to certain conditions, an additional $70 million upon FDA approval of ensifentrine, $175 million in two separate tranches upon achievement of certain net sales milestones and, subject to the approval of the lenders, $100 million to support strategic initiatives. VPI will pay only interest on the outstanding loans under the five-year debt facility on a quarterly basis with all amounts outstanding due at maturity.