LONDON: Verona Pharma plc has entered into a debt financing facility for up to $30 million with Silicon Valley Bank (SVB), a news release said.
The non-dilutive capital provides further financial flexibility to support pre-commercialization activities for ensifentrine, the Company’s first-in-class product candidate, which is currently in Phase 3 trials.
Under the terms of the debt facility, Verona Pharma can borrow up to $30 million in three tranches: $5 million at closing, $10 million available through June 30, 2022 and an additional $15 million available through June 30, 2023.
The two latter tranches are contingent upon achievement of certain clinical development milestones and other specified conditions. The loan facility matures on November 1, 2024, with the period prior to December 1, 2023 being interest only.
David Zaccardelli, Pharm. D., President and CEO of Verona Pharma, said: “We are pleased to secure this credit facility which provides us with the flexibility to access non-dilutive capital upon achievement of certain clinical development milestones.
This will provide additional support, as needed, for pre-commercialization activities for ensifentrine. With this facility and the $200 million raised in July 2020, we believe Verona Pharma has sufficient resources to deliver on our key milestones.”
The ENHANCE Phase 3 trials with nebulized ensifentrine for the maintenance treatment of chronic obstructive pulmonary disease (COPD) commenced in September 2020. Verona is also conducting a Phase 2 clinical trial to evaluate ensifentrine delivered via pressurized metered-dose inhaler (“pMDI”) formulation in patients with moderate to severe COPD and a pilot study with pMDI ensifentrine in U.S. patients hospitalized with COVID-19.
Verona Pharma is a clinical-stage biopharmaceutical company focused on developing and commercializing innovative therapies for the treatment of respiratory diseases with significant unmet medical needs.