Biohaven Secures Investment of up to $600 Million

Rare Daily Staff

Biohaven said that it has entered into an agreement with Oberland Capital Management for an investment of up to $600 million, with the first tranche of $250 million to be funded by April 30.

Biohaven said the additional capital will provide significant financial resources for ongoing clinical trials across the company’s development portfolio, and will support commercialization efforts of troriluzole, the company’s therapy for spinocerebellar ataxia, a group of rare and ultra-rare progressively debilitating and fatal genetic conditions for which no treatments are available. The U.S. Food and Drug Administration is reviewing troriluzole under its Priority Review pathway.

Troriluzole is a third-generation novel prodrug that modulates glutamate, the most abundant excitatory neurotransmitter in the human body. Its primary mode of action is to reduce synaptic levels of glutamate. Troriluzole increases glutamate uptake by augmenting the expression and function of excitatory amino acid transporters located on glial cells that play a key role in clearing glutamate from the synapse.

Troriluzole has the potential to be developed in a number of other diseases associated with excessive glutamate.

“Biohaven is in a unique position to address major areas of unmet need in rare disease, and we are particularly enthusiastic about supporting Biohaven as they strive to bring a novel medication like troriluzole to the SCA patient community,” said Andrew Rubinstein, managing partner of Oberland Capital.

Under the financing agreement, Oberland Capital may purchase up to $600 million of Biohaven’s senior secured notes. In addition to the first tranche, $150 million will be funded at the company’s option, contingent upon FDA approval of troriluzole and subject to the satisfaction of certain additional conditions. An additional $200 million will be funded upon the mutual agreement of Biohaven and Oberland for permitted strategic acquisitions and related costs and expenses. The purchases are subject to other terms and conditions.

Oberland Capital will have the right to receive a regulatory approval milestone payment, payable quarterly through December 31, 2030, and tiered, single-digit royalty payments on global net sales of troriluzole for up to a maximum of 10 years from the closing date. The payments are capped at a multiple of the amounts funded by Oberland Capital.