Verona secures up to $150 million via debt facility with Oxford

By Mary-Katherine Stinson

Lexington, Ky., Oct. 17 – Verona Pharma plc secured up to $150 million through a debt financing facility with Oxford Finance LLC, according to a press release.

The new facility replaces the company’s existing $30 million facility with Silicon Valley Bank.

Verona drew $10 million at closing, a portion of which was used to repay the existing facility, prepayment fees and other associated costs, with an additional $10 immediately available at Verona’s discretion.

An additional $80 million may be drawn in two separate tranches upon achievement of near-term clinical and regulatory milestones.

An additional $50 million may be drawn subject to Oxford’s approval.

The facility has an interest-only period for the first 36 months, extendable to 48 months on achievement of certain milestones.

The facility matures Oct. 1, 2027.

Proceeds will be used to support the planned commercial launch for ensifentrine, which recently reported positive phase 3 data from trials. The company plans to submit a new drug application in the United States in the first half of 2023 for approval ahead of a planned 2024 launch.

The clinical-stage biopharmaceutical company focused on respiratory diseases is based in London.

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