Verona Pharma Announces Amended Strategic Financing with Oaktree and OMERS

Core Viewpoint - Verona Pharma has successfully amended its strategic financing agreements, repaying the RIPSA and increasing its term loan facility to $450 million with improved terms, enhancing financial flexibility and simplifying its balance sheet [3][4]. Financing Agreements - The company repurchased the $100 million obligation under the RIPSA with reduced repayment fees [5]. - The term loan facility was increased to $450 million, with $125 million borrowed from an expanded Tranche C, resulting in an aggregate of $250 million outstanding [8]. - The interest rate on the term loan was reduced from 11% to 9.7%, with a further reduction to 9.35% upon achieving certain sales milestones [8]. - A provision was added allowing Verona Pharma to secure a working capital revolving credit facility of up to $75 million with a separate group [8]. Product Development - The ongoing success of the Ohtuvayre™ (ensifentrine) launch has been recognized, contributing to the growth of prescriptions and enabling the termination of the RIPSA [4]. - Ohtuvayre is the first inhaled therapy for the maintenance treatment of COPD that combines bronchodilator and non-steroidal anti-inflammatory activities [8]. - Ensifentrine has potential applications in non-cystic fibrosis bronchiectasis, cystic fibrosis, asthma, and other respiratory diseases [9]. Partnerships - Oaktree Capital Management and OMERS Life Sciences are key partners in the financing arrangements, expressing confidence in the US launch of Ohtuvayre and the company's growth prospects [4][10].