8 Mar 2010 15:06
The information contained herein is not for publication or distribution, directly or indirectly, to persons in the United States. These materials do not contain or constitute an offer of securities for sale in the United States or an invitation or offer to the public or form of application to subscribe for securities. The securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States without registration thereunder or pursuant to an available exemption therefrom.
8 March 2010
Vernalis Regains European Rights to Frovatriptan
Vernalis plc (LSE: VER) today announces that it has completed the termination of the Paul Capital Healthcare Agreements (the PCH Agreements) and regained rights to 100% of the royalties receivable from Menarini's sales of frovatriptan, in exchange for a one-off net cash payment of $32.57 million (approximately £21 million) to Paul Capital Healthcare (PCH). In addition, PCH subscribed for and was granted 2.1 million warrants over Vernalis Ordinary Shares.
Menarini markets frovatriptan in the EU and certain other territories and in 2009 sales increased 15% to €32.4 million. Following today's termination of the PCH Agreements and with effect from 1 January 2010 Vernalis earns and retains the entire 25.25% royalty on Menarini's sales.
Ian Garland, Chief Executive Officer of Vernalis, commented:
"This is a further important step in re-building shareholder value for Vernalis. By terminating the PCH Agreements we become debt free, regain a sustainable income stream and extend our cash runway beyond 2012."
The warrants over 2,100,000 Ordinary Shares granted to PCH comprise 1,100,000 series A warrants each exercisable at an exercise price of 95 pence and 1,000,000 series B warrants each exercisable at an exercise price of 114 pence.
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Enquiries:
| Vernalis Contacts
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| Ian Garland, Chief Executive Officer | +44 (0) 118 989 9360 |
| David Mackney, Chief Financial Officer
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| Brunswick Group
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| Jon Coles | +44 (0) 20 7404 5959 |
| Justine McIlroy |
|
Notes to Editors
About Vernalis
Vernalis is a development stage pharmaceutical company with significant expertise both in de novo fragment and structure-based drug discovery and pre-clinical and clinical development. The Group has one marketed product, frovatriptan for the acute treatment of migraine, and five priority product candidates in clinical development (three of which are partnered), two further priority programmes in pre-clinical development (neither of which is partnered) and other collaborative drug discovery programmes. Vernalis has a further two partnered programmes that are in clinical development in which it retains an economic interest. Our technologies, capabilities and products are endorsed by collaborations with leading, global pharmaceutical companies including GSK, Biogen Idec, Novartis, Servier, Chiesi, Menarini, and Endo.
For further information about Vernalis, please visit www.vernalis.com.
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| Product | Indication | Pre-Clinical | Phase I | Phase II | Phase III | Marketed | Marketing Rights |
| Priority Programmes |
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| Frovatriptan | Acute Migraine |
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| X | Menarini EU |
| V3381 | Neuropathic Pain |
|
| X |
|
| Worldwide |
| V2006 | Parkinson's Disease |
|
| X |
|
| Biogen Idec |
| V85546 | Inflammatory Disease |
| X |
|
|
| Worldwide |
| NVP-AUY922 | Cancer |
| X |
|
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| Novartis |
| NVP-HSP990 | Cancer |
| X |
|
|
| Novartis |
| V3381 CC | Chronic Cough |
| X |
|
|
| Worldwide |
| V158866 | Pain | X |
|
|
|
| Worldwide |
| V158411 | Cancer | X |
|
|
|
| Worldwide |
| Other Programmes |
|
|
|
|
|
| |
| Frovatriptan | Acute Migraine |
|
|
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| X | Endo Pharma US |
| V1512 | Parkinson's Disease |
|
| X |
|
| Worldwide (excl. Italy) |
| V10153 | Ischaemic Stroke |
|
| X |
|
| Worldwide |
| RPL554 | Asthma Allergic Rhintis |
|
| X |
|
| Verona Pharma |
| CHR2797 | Cancer |
|
| X |
|
| Chroma Therapeutics |
For further information about Vernalis, please visit www.vernalis.com
Vernalis Forward-Looking Statement
This news release may contain forward-looking statements that reflect the Company's current expectations regarding future events including the clinical development and regulatory clearance of the Company's products, the Company's ability to find partners for the development and commercialisation of its products, as well as the Company's future capital raising activities. Forward-looking statements involve risks and uncertainties. Actual events could differ materially from those projected herein and depend on a number of factors including the success of the Company's research strategies, the applicability of the discoveries made therein, the successful and timely completion of clinical studies, the uncertainties related to the regulatory process, the ability of the Company to identify and agree beneficial terms with suitable partners for the commercialisation and/or development of its products, as well as the achievement of expected synergies from such transactions, the acceptance of Frova® and other products by consumers and medical professionals, the successful integration of completed mergers and acquisitions and achievement of expected synergies from such transactions, and the ability of the Company to identify and consummate suitable strategic and business combination transactions.