Verona Pharma secures up to $ 30 million in debt financing from Silicon Valley Bank

Non-dilutive capital for more financial flexibility

LONDON and RALEIGH, North Carolina, November 23, 2020 (GLOBE NEWSWIRE) – Verona Pharma plc (Nasdaq: VRNA) (“Verona Pharma” or the “Company”), a clinical-stage biopharmaceutical company focused on respiratory disease, announces that it has entered into a debt financing facility of up to $ 30 million (“Loan Facility”) with Silicon Valley Bank (“SVB”). The non-dilutive capital provides additional financial flexibility to support the pre-commercialization activities of ensifentrine, the first-in-class product candidate, which is currently in phase 3 trials.

Under the terms of the credit facility, Verona Pharma can borrow up to $ 30 million in three tranches: $ 5 million at closing, $ 10 million available until June 30, 2022, and an additional $ 15 million available until June 30, 2022. ‘as of June 30, 2023. The last two installments are subject to the achievement of certain clinical development milestones and other specified conditions. The loan facility matures on November 1, 2024, with the period prior to December 1, 2023 being interest only.

David Zaccardelli, Pharm. D., President and CEO of Verona Pharma, said: “We are delighted to obtain this credit facility which gives us the flexibility to access non-dilutive capital when completing certain clinical development milestones. . This will provide additional support, as needed, for ensifentrin pre-market activities. With this facility and the $ 200 million raised in July 2020, we believe Verona Pharma has sufficient resources to achieve our key milestones. “

ENHANCE phase 3 trials with nebulized ensifentrin for the maintenance treatment of chronic obstructive pulmonary disease (“COPD”) began in September 2020. Verona is also conducting a phase 2 clinical trial to evaluate ensifentrin administered via a pressurized metered-dose inhaler (“pMDI”) formulation in patients with moderate to severe COPD; and a pilot study with pMDI ensifentrin in US patients hospitalized with COVID-19.

For more information, please contact:

Verona Pharma plc

Phone: +44 (0) 20 3283 4200

Victoria Stewart, Director of Communications

[email protected]

Argot Partners
(US Investor Surveys)

Phone. : +1 212-600-1902
[email protected]

Kimberly Minarovich / Michael Barron

Optimal strategic communications
(European media and investor surveys)

Phone: +44 (0) 203 950 9144
[email protected]

Mary Clark / Eva Haas / Shabnam Bashir

About Verona Pharma

Verona Pharma is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for the treatment of respiratory diseases with significant unmet medical needs. If successfully developed and approved, Verona Pharma’s product candidate, ensifentrin, has the potential to be the first therapy for the treatment of respiratory disease that combines bronchodilator and anti-inflammatory activities in a single compound. The Company is evaluating nebulized ensifentrin in its phase 3 clinical program ENHANCE (“Ensifentrin as a new nebulized inhalation therapy for COPD”) for the maintenance treatment of COPD. The company raised gross proceeds of $ 200 million through a private placement in July 2020 and expects the funds to support its operations and its Phase 3 clinical program through 2023. Two additional formulations of ensifentrine are currently in phase 2 development for the treatment of COPD: dry powder inhaler (“DPI”) and pressurized metered-dose inhaler (“pMDI”). Ensifentrin is being evaluated in a pilot clinical study in hospitalized patients with COVID-19 and has potential applications in cystic fibrosis, asthma and other respiratory diseases. For more information, please visit www.veronapharma.com.

Forward-looking statements

This press release contains forward-looking statements. All statements contained in this press release that do not relate to historical facts should be considered as forward-looking statements. These forward-looking statements are based on the current expectations of management. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors which may cause our actual results, performance or achievements to be materially different from our expressed expectations or under- as understood by forward-looking statements, including, without limitation the material factors discussed under “Risk Factors” in our registration statement on Form F-1 filed with the SEC on August 17, 2020, our report on Form 6-K to be filed with the SEC on November 23, 2020, and our other reports filed with the SEC. These forward-looking statements represent management’s estimates as of the date of this press release. While we may choose to update these forward-looking statements at some time in the future, we disclaim any obligation to do so, even if subsequent events change our view. These forward-looking statements should not be taken as representing our views as of any date subsequent to the date of this press release.

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