Verona Pharma shares skyrocket after $200m fundraise

Respiratory-focussed clinical-stage biopharmaceutical company Verona Pharma has raised $200m (£159m) in an oversubscribed private placement and subscription, to fund its phase 3 clinical programme ‘ENHANCE’, or ensifentrine as a novel inhaled nebulised COPD therapy, in chronic obstructive pulmonary disease (COPD), as well as for general corporate purposes.

The AIM and Nasdaq-traded firm said the phase 3 clinical trials were planned to start later in 2020.

The company said the financing comprised a private placement of 39,090,009 American depositary shares, each representing eight ordinary shares, at a price of $4.50 per depositary share, and 43,111,112 ordinary shares at the equivalent price, being 45p or 56.25 cents.

Verona said it expected the net proceeds to be around $183m after deducting placement agent fees and estimated expenses.

The financing was led by new investors RA Capital Management, Access Biotechnology, Perceptive Advisors, Acorn Bioventures, PBM Capital, Samsara BioCapital, Foresite Capital, Sphera, Fairmount and Soleus Capital, as well as additional investors.

Existing investors, OrbiMed, New Enterprise Associates, Vivo Capital, Abingworth, Novo Holdings, Polar Capital and Aisling Capital also participated.

“We are extremely pleased to have received support from this group of highly experienced life science investors who understand the potential benefit of ensifentrine for patients with COPD,” said president and chief executive officer David Zaccardelli.

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

“This important milestone brings us closer to our goal of ensuring ensifentrine is available for millions of COPD patients who urgently need additional treatment options.”

At 1206 BST, shares in Verona Pharma were up 42.15% in London, at 66.1p.