Verona Pharma Secures Debt Financing of as much as $150 Million from Oxford Finance

Non-dilutive capital funds deliberate launch of ensifentrine for COPD

LONDON and RALEIGH, N.C., Oct. 17, 2022 (GLOBE NEWSWIRE) — Verona Pharma plc (Nasdaq: VRNA) (“Verona Pharma” or the “Firm”), declares it has entered right into a debt financing facility (“debt facility”) offering the Firm with entry to as much as $150 million from Oxford Finance LLC (“Oxford”). The non-dilutive capital gives additional monetary flexibility and assist for commercialization actions for ensifentrine, the Firm’s first-in-class product candidate, which not too long ago reported constructive Section 3 knowledge within the ENHANCE-2 trial in persistent obstructive pulmonary illness (“COPD”). The $150 million debt facility replaces the present $30 million facility with Silicon Valley Financial institution (“SVB”).

“We imagine the potential proceeds from this debt facility and from the U.Ok. tax credit score program, together with our present $231.7 million of money at September 30, 2022, will present greater than 3 years of runway, funding the deliberate business launch of ensifentrine within the US,” stated David Zaccardelli, Pharm. D., President and Chief Govt Officer. “We’ve got already begun the early levels of launch preparation and, pending constructive ENHANCE-1 outcomes, we intend to submit a New Drug Utility within the US for nebulized ensifentrine within the first half of 2023, and if accredited, plan to launch in 2024.”

“Oxford is happy to function a capital associate, supporting Verona Pharma’s growth and commercialization actions for the unmet respiratory situation COPD and doubtlessly different respiratory illnesses,” stated Adam Ok. Soller, Managing Director at Oxford. “The promising outcomes from the current Section 3 ENHANCE-2 trial bolster ensifentrine’s prospects as a compelling remedy for thousands and thousands of sufferers affected by COPD worldwide.”

Beneath the phrases of the debt facility, Verona Pharma drew $10 million at closing, a portion of which was used to repay the present debt facility, prepayment charges and different related prices to SVB. A further $10 million is straight away accessible to be drawn at Verona Pharma’s discretion. The Firm might draw an extra $80 million in two separate tranches upon achievement of near-term medical and regulatory milestones. A further $50 million could also be drawn topic to the approval of Oxford. Verona Pharma can pay curiosity just for the primary 36 months, extendable to 48 months on achievement of sure milestones. The debt facility is scheduled to mature on October 1, 2027.

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About Verona Pharma

Verona Pharma is a clinical-stage biopharmaceutical firm targeted on creating and commercializing modern therapies for the therapy of respiratory illnesses with vital unmet medical wants. If efficiently developed and accredited, Verona Pharma’s product candidate, ensifentrine, has the potential to be the primary remedy for the therapy of respiratory illnesses that mixes bronchodilator and anti inflammatory actions in a single compound. The Firm is evaluating nebulized ensifentrine in its Section 3 medical program ENHANCE (“Ensifentrine as a Novel inHAled Nebulized COPD thErapy”) for COPD upkeep therapy. Ensifentrine met the first endpoint in ENHANCE-2 demonstrating a statistically vital and clinically significant enchancment in lung operate. As well as, ensifentrine considerably diminished the speed of COPD exacerbations within the ENHANCE-2 trial. Two further formulations of ensifentrine are in Section 2 growth for the therapy of COPD: dry powder inhaler (“DPI”) and pressurized metered-dose inhaler (“pMDI”). Ensifentrine has potential functions in cystic fibrosis, bronchial asthma and different respiratory illnesses. For extra info, please go to www.veronapharma.com.

About Oxford Finance LLC

Oxford Finance is a specialty finance agency offering senior secured loans to private and non-private life sciences and healthcare providers corporations worldwide. For over 20 years, Oxford has delivered versatile financing options to its shoppers, enabling these corporations to maximise their fairness by leveraging their belongings. Since 2002, Oxford has funded over $9 billion in loans. Oxford is headquartered in Alexandria, Virginia, with further workplaces in California (San Diego, Palo Alto, and Los Angeles) and the better Boston and New York Metropolis metropolitan areas. For extra info, go to oxfordfinance.com.

Ahead-Wanting Statements

This press launch accommodates forward-looking statements. All statements contained on this press launch that don’t relate to issues of historic truth must be thought of forward-looking statements, together with, however not restricted to, statements concerning the anticipated use of the proceeds from the debt facility, the sources of financing for the deliberate business launch of ensifentrine, the money runway interval offered by the sources of financing and the absolutely funding of the business launch, and the timing of a New Drug Utility submission for and business launch of ensifentrine.

These forward-looking statements are primarily based on administration’s present expectations. These statements are neither guarantees nor ensures, however contain identified and unknown dangers, uncertainties and different necessary elements that will trigger our precise outcomes, efficiency, or achievements to be materially completely different from our expectations expressed or implied by the forward-looking statements, together with, however not restricted to, the next: our restricted working historical past; our want for added funding to finish growth and commercialization of ensifentrine, which might not be accessible and which can power us to delay, scale back or remove our growth or commercialization efforts; the reliance of our enterprise on the success of ensifentrine, our solely product candidate below growth; financial, political, regulatory and different dangers concerned with worldwide operations; the prolonged and costly technique of medical drug growth and commercialization, which has an unsure final result; severe adversarial, undesirable or unacceptable negative effects related to ensifentrine, which may adversely have an effect on our capability to develop or commercialize ensifentrine; potential delays in enrolling topics, which may adversely have an effect on our analysis and growth efforts and the completion of our medical trials; we might not be profitable in creating ensifentrine for a number of indications; our capability to acquire approval for and commercialize ensifentrine in a number of main pharmaceutical markets; misconduct or different improper actions by our workers, consultants, principal investigators, third-party service suppliers and licensees; our lack of ability to comprehend the anticipated advantages below licenses granted by us to 3rd events to develop and commercialize ensifentrine, our future development and talent to compete is determined by retaining our key personnel and recruiting further certified personnel; materials variations between our “top-line” knowledge and ultimate knowledge; our reliance on third events, together with medical analysis organizations, medical investigators, producers and suppliers, and the dangers associated to those events’ capability to efficiently develop and commercialize ensifentrine; lawsuits associated to patents overlaying ensifentrine and the potential for our patents to be discovered invalid or unenforceable; lawsuits associated to our licensing of patents and know-how with third events for the event and commercialization of ensifentrine; adjustments in our tax charges, unavailability of sure tax credit or reliefs or publicity to further tax liabilities or assessments may have an effect on our profitability, and audits by tax authorities may end in further tax funds for prior durations; and our vulnerability to pure disasters, international financial elements, geo-political actions and sudden occasions, together with well being epidemics or pandemics just like the COVID-19 pandemic, and conflicts such because the Russia-Ukraine battle, which has and will proceed to adversely impression our enterprise. These and different necessary elements below the caption “Threat Components” in our Annual Report on Kind 10-Ok for the yr ended December 31, 2021, and our different experiences filed with the Securities and Change Fee, may trigger precise outcomes to vary materially from these indicated by the forward-looking statements made on this press launch. Any such forward-looking statements signify administration’s estimates as of the date of this press launch. Whereas we might elect to replace such forward-looking statements in some unspecified time in the future sooner or later, we disclaim any obligation to take action, even when subsequent occasions trigger our views to alter. These forward-looking statements shouldn’t be relied upon as representing our views as of any date subsequent to the date of this press launch.