Biohaven Ltd. on Monday announced that New York-based Oberland Capital has agreed to invest up to $600 million in the New Haven-based biopharmaceutical company, with the first tranche of $250 million to be funded at closing on or before April 30.
Biohaven officials said the additional capital will provide significant financial resources for ongoing clinical trials across the company’s full development portfolio.
Officials said it will also support commercialization efforts in anticipation of a potential U.S. Food and Drug Administration (FDA) approval of its therapy troriluzole, which treats patients with spinocerebellar ataxia (SCA), a group of rare and ultra-rare progressively debilitating and fatal genetic conditions for which no treatments are currently available.
“Biohaven is in a unique position to address major areas of unmet need in rare disease,” said Andrew Rubinstein, managing partner at Oberland Capital, “and we are particularly enthusiastic about supporting Biohaven as they strive to bring a novel medication like troriluzole to the SCA patient community.”
The companies said the investment by Oberland Capital takes the form of a note purchase agreement (NPA) that is non-dilutive to current investors. Under the NPA, Oberland may purchase up to $600 million of Biohaven’s senior secured notes, of which $250 million will be funded on or before April 30; $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; and $200 million will be funded upon the mutual agreement of the parties for permitted strategic acquisitions and related costs and expenses.
The purchases are subject to other terms and conditions of the NPA.
These include that Oberland Capital will have a right to receive a regulatory approval milestone payment, payable quarterly through Dec. 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. These payments are capped at a multiple of amounts funded by Oberland Capital.
Biohaven Ltd. is the company that remained after the original Biohaven sold its migraine therapeutic assets to pharmaceutical giant Pfizer Inc. in 2022 in a deal valued at $13 billion.
