Biohaven Ltd. (NYSE:BHVN) shares are trading higher premarket on Monday after the company disclosed that it has entered into an agreement with Oberland Capital Management LLC to invest up to $600 million.
The investment is structured through a non-dilutive Note Purchase Agreement (NPA). The first tranche of $250 million in gross proceeds is expected to be funded at closing on or before April 30, 2025.
Following FDA approval of troriluzole, Biohaven may draw an additional $150 million at its option, while another $200 million could be made available upon mutual agreement for strategic acquisitions and related expenses, subject to specific conditions.
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The NPA also grants Oberland a right to regulatory milestone payments through 2030 and tiered single-digit royalties on global net sales of troriluzole for up to 10 years, capped at a predetermined multiple of the invested amount.
The additional funding is expected to bolster Biohaven's clinical trial programs across its development portfolio and support commercialization initiatives ahead of a potential U.S. FDA approval of troriluzole for spinocerebellar ataxia (SCA), a group of rare, progressively debilitating, and fatal genetic disorders currently lacking approved treatments.
As of Dec. 31, cash, cash equivalents, marketable securities and restricted cash stood at around $489 million.
Investors can gain exposure to the stock via Simplify Health Care ETF (NYSE:PINK) and iShares Trust iShares Neuroscience and Healthcare ETF (NYSE:IBRN).
Price Action: Biohaven shares are up 5.85% at $21.00 premarket at the last check Monday.
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