200 Million in Oversubscribed Private Placement and Subscription

NASDAQ:VRNA   Verona Pharma plc
Verona Pharma Raises $200 Million in Oversubscribed Private Placement and Subscription

Funding to support Phase 3 ENHANCE clinical program in COPD

The Financing comprises a private placement of 39,090,009 of the Company’s American Depositary Shares (“ADSs”), each representing eight ordinary shares of the Company (“Ordinary Shares”), at a price of $4.50 per ADS, and 43,111,112 of the Company’s Ordinary Shares at the equivalent price per Ordinary Share, being £0.45 or $0.5625

Verona Pharma intends to use the net proceeds from the Financing primarily to fund its Phase 3 clinical program ENHANCE (Ensifentrine as a Novel inHAled Nebulized COPD thErapy) in chronic obstructive pulmonary disease (COPD) and for general corporate purposes. The Phase 3 clinical trials are planned to start later in 2020.

With this financing we plan to initiate our Phase 3 ENHANCE clinical trials later this year and expect to support our programs into 2023.

The treatment is different to anything currently out on the market for COPD in that it has a dual-action.

Ensifentrine has not shown side effects such as nausea, vomiting and weight loss, that halted previous attempts to develop similar drugs.

The market liked this strategy, alongside a good data package from the phases I and II of clinical trials.

So highly regarded industry names such as RA Capital, one of America’s leading biotech investors, backed the phase III because they see potential for success.

Even if you see more positive sentiment towards healthcare, it still depends on the quality of the individual companies. In this case Verona had a large data set, a clear path forward agreed with the regulator and clear inflexion points.