Biohaven Rallies On Heels Of $600M Funding Agreement With Oberland

Biohaven Ltd. 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.

Also Read: Strong Immunoglobulin Reduction Data Positions Biohaven’s BHV-1300 As Potential Autoimmune Therapy

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 PINK and iShares Trust iShares Neuroscience and Healthcare ETF IBRN.

Price Action: Biohaven shares are up 5.85% at $21.00 premarket at the last check Monday.

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