Paul Capital Healthcare and Vernalis sign financing agreement

Under the agreement, Vernalis will receive approximately E18.4 million in cash from Paul Capital Healthcare and, in return, Paul Capital Healthcare will receive approximately 90% of Menarini’s payments to Vernalis under their exclusive license and supply agreement for the commercialization of frovatriptan in Europe and certain other territories.

Vernalis will continue to supply Menarini with frovatriptan active pharmaceutical ingredient. Frovatriptan is currently approved for the acute treatment of migraine in the Europe, the US, Canada and seven Central American countries.

Tony Weir, CFO of Vernalis, said: “This transaction with Paul Capital Healthcare secures significant, non-dilutive funds for Vernalis, giving us the platform to rebuild new shareholder value in the medium term.”