Biohaven secures $600m financing as it awaits FDA prodrug decision

1 month ago 20

Jenna Philpott

Tue, Apr 29, 2025, 4:06 AM 3 min read

The financing comes successful the signifier of a enactment acquisition agreement, allowing Oberland to get up to $600m of Biohaven’s elder secured notes successful aggregate tranches. The archetypal tranche of $250m is scheduled to beryllium funded by 30 April, according to the institution connection issued connected 28 April.

The 2nd tranche – worthy $150m – is contingent connected US Food and Drug Administration (FDA) support of troriluzole and taxable to further unspecified conditions. A 3rd tranche of $200m whitethorn beryllium made disposable for strategical acquisitions and related expenses. Oberland Capital volition beryllium eligible for a regulatory support milestone payment, payable quarterly done the extremity of 2030.

Shares successful Biohaven closed 9.6% higher astatine $21.74 connected 28 April, compared to $19.84 astatine marketplace open.

The woody comes arsenic Biohaven awaits a regulatory determination from the FDA connected troriluzole. The campaigner is simply a prodrug of riluzole, which is already approved for amyotrophic lateral sclerosis (ALS). Troriluzole is being evaluated for SCA, a uncommon neurodegenerative upset with constricted attraction options, characterised by a nonaccomplishment of coordination and balance. The FDA granted the exertion precedence reappraisal successful February 2025, with a last determination expected successful Q3 2025.

The institution is positioning the caller backing to accelerate commercialized readying and beforehand its broader pipeline, which includes CNS-targeting therapies.

Biohaven’s main fiscal serviceman Matt Buten said: “This statement with Oberland Capital provides america with the enactment and flexibility to proceed advancing our pipeline arsenic we marque motorboat preparations successful parallel, and we are excited to accelerate our readying efforts successful earnest."

If it wins approval, troriluzole would correspond Biohaven’s archetypal greenlit merchandise since it spun retired from its migraine concern pursuing a $11.6bn acquisition from Pfizer backmost successful 2022.

However, Biohaven’s way to support for troriluzole has not been straightforward. The cause failed to conscionable its superior endpoint successful a Phase III proceedings (NCT03701399) conducted successful 2022. Despite the setback, Biohaven shared consequent analyses revealing benefits for patients with a definite subset of the illness and showed a slowed illness progression. The FDA initially refused to reappraisal the exertion but aboriginal accepted a revised submission pursuing the merchandise of this advertisement hoc data.

Troriluzole’s prospects successful Europe are much uncertain. Earlier successful April, the European Medicines Agency (EMA) questioned whether the drug’s efficacy meaningfully differed from that of riluzole and challenged its classification arsenic a caller progressive substance. According to the EMA, Biohaven said it would make further information earlier submitting a caller application.