Vernalis is a specialty bio-pharmaceutical company focused on products marketed to neurologists. At the time, the company had two marketed products, Frova® (frovatriptan) and Apokyn® (apomorphine hydrochloride), and a development pipeline focused on neurology and central nervous system disorders. Following a restructuring of its operations to focus on its promising pipeline of development stage products, Vernalis was seeking non-dilutive capital to advance its pipeline to the point at which the various development products could be partnered.
Paul Capital Healthcare worked with Vernalis to structure a transaction that provided €18.4 million of upfront, non-dilutive capital. In return, Paul Capital Healthcare will receive approximately 90 percent of royalty payments to Vernalis under the Company’s exclusive license and supply agreement for the commercialization of frovatriptan in Europe and certain other territories.
Vernalis accessed non-dilutive capital to support development of its promising proprietary programs and achieve the objectives of its restructuring. This capital provides Vernalis with the platform on which to rebuild shareholder value in the medium term.
