Vernalis has signed a €18.4M financing agreement with Paul Capital Healthcare for frovatriptan, Vernalis' migraine drug. In return for the cash, Paul Capital Healthcare will receive approximately 90 percent of Menarini's payments to Vernalis under their agreement for the commercialization of frovatriptan. According to Hemscott, "the plan was a way for it to meet its debt obligations to U.S. Frova marketing partner Endo Pharmaceutical, which had been valued at $56 million and represented a 'sword of Damocles' for Vernalis." In a release, Vernalis' CFO Tony Weir said the financing deal will allow the company to rebuild new shareholder value in the medium term.
- here's the release
- read the Hemscott report