Vernalis Raises $58m To Close Potential Funding Gap
Slower than expected US sales of its first long-acting liquid cough-and-cold formulation, and improved visibility on its future US infrastructure costs, has prompted UK-based Vernalis to raise funds from existing investors to support further product launches and to reach the goal of sustainable profitability.
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Vernalis' decision to switch strategy and enter the US cough-cold market backfired spectacularly and acquirer Ligand is getting hold of what once was a jewel in the UK biotech crown for next to nothing.
Disappointing sales growth of its prescription extended-release cough-and-cold product has led Vernalis to decide to close down its US commercial operations, and to seek a buyer for the whole company.
The remarkable thing about the UK firm Vernalis is how many times it has in its various incarnations been able to extract cash from shareholders without having delivered on its promises. This time, says CEO Ian Garland, is the last time. It has just announced a £68.5 million placing and open offer in which it has convinced both new and existing investors of the wisdom of establishing a North American commercial infrastructure through which to channel extended-release liquid prescription cough and cold products from its new partner, Tris Pharma.