Biohaven Secures $600M Funding Deal with Oberland Capital, Awaits FDA Decision on Troriluzole

Biohaven Pharmaceutical Holding Company Ltd. has entered into a significant funding agreement with Oberland Capital Management, potentially worth up to $600 million. This deal comes at a crucial time for the biotech firm as it anticipates an FDA decision on its spinocerebellar ataxia (SCA) drug candidate, troriluzole.

Funding Agreement Details

The agreement with Oberland Capital is structured as a note purchase agreement, allowing for the purchase of up to $600 million in Biohaven's senior secured notes. The funding is divided into several tranches:

• An initial $250 million to be funded by April 30, 2025
• A conditional $150 million tied to FDA approval of troriluzole
• Up to $200 million for strategic acquisitions, subject to mutual agreement

In exchange, Oberland Capital will receive a milestone payment upon troriluzole's potential approval and tiered single-digit royalty payments on global net sales for up to 10 years.

Troriluzole's Regulatory Journey

Troriluzole, a prodrug of the ALS treatment riluzole, is currently under FDA review for the treatment of SCA. The agency has granted priority review status, with a decision expected in the third quarter of 2025. This represents a significant turnaround for Biohaven, as the FDA had initially refused to evaluate the drug in 2023 due to a failed phase 3 trial.

However, the drug's path in Europe has encountered obstacles. Biohaven recently withdrew its application for approval from the European Medicines Agency (EMA) following concerns about efficacy data and the drug's status as a new, active substance. The company plans to generate additional data before resubmitting its application to European regulators.

Biohaven's Pipeline and Recent Challenges

Beyond troriluzole, Biohaven boasts a diverse pipeline spanning neuroscience, oncology, immunology, and inflammation. However, the company has faced recent setbacks, including:

• A failed phase 2/3 study of BHV-7000 in bipolar disorder
• Disappointing results from a phase 3 trial of taldefgrobep in spinal muscular atrophy

Despite these challenges, Biohaven continues to advance its R&D efforts, with upcoming results expected for BHV-7000 in major depressive disorder and epilepsy.

The funding agreement with Oberland Capital has been well-received by investors, with Biohaven's share price jumping approximately 10% following the announcement. This positive response comes as a welcome change for the company, which has faced investor concerns since its split from its migraine franchise in a $11.6 billion deal with Pfizer in 2022.