Silicon Valley Bank entered an agreement to provide a debt financing facility for up to $30 million for Verona Pharma, a clinical-stage biopharmaceutical company focused on respiratory diseases.
The non-dilutive capital provides further flexibility to support pre-commercialization activities for ensifentrine, Verona’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 Nov. 1, 2024, with the period prior to Dec. 1, 2023 being interest only.
“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,” David Zaccardelli, president and CEO of Verona Pharma, said.
The ENHANCE Phase 3 trials with nebulized ensifentrine for the maintenance treatment of chronic obstructive pulmonary disease commenced in September 2020. Verona is also conducting a Phase 2 clinical trial to evaluate ensifentrine delivered via pressurized metered-dose inhaler formulation in patients with moderate to severe COPD and a pilot study with pMDI ensifentrine in U.S. patients hospitalized with COVID-19.
