Biohaven Secures Up to $600 Million Investment from Oberland Capital

Biohaven Ltd., a prominent biopharmaceutical company, recently announced a significant financial agreement with Oberland Capital Management LLC, a private investment firm specializing in healthcare. This strategic partnership could provide Biohaven with up to $600 million in non-dilutive capital. The initial $250 million will be made available by the end of April 2025, with additional funds contingent on certain milestones and mutual agreements between the two parties.

The substantial investment is set to bolster Biohaven's financial resources, facilitating ongoing clinical trials and supporting efforts to commercialize troriluzole, a novel compound aimed at treating spinocerebellar ataxia (SCA). SCA encompasses a group of rare genetic conditions that progressively impair coordination and have no existing treatments. Biohaven is actively pursuing U.S. FDA approval for troriluzole, which could represent a groundbreaking advancement for those affected by these debilitating conditions.

Matt Buten, Biohaven's Chief Financial Officer, expressed satisfaction with the support from Oberland Capital, noting their track record in funding rare disease initiatives. He emphasized the flexible and long-term nature of the financing, which underscores troriluzole's potential after extensive clinical research and collaboration within the SCA community. The agreement also highlights Oberland Capital's belief in Biohaven’s broader portfolio, which includes five innovative platforms across various therapeutic areas such as immunology, neuroscience, and oncology.

Andrew Rubinstein, Managing Partner at Oberland Capital, acknowledged Biohaven's unique position in addressing unmet needs in rare diseases. He conveyed enthusiasm for supporting efforts to deliver troriluzole to patients with SCA, underscoring the potential within Biohaven's diverse range of innovative therapies.

The agreement takes the form of a Note Purchase Agreement (NPA), allowing for the purchase of up to $600 million in senior secured notes from Biohaven. The NPA outlines that $250 million will be funded initially, with an additional $150 million contingent upon FDA approval of troriluzole. Furthermore, a potential $200 million could be allocated for strategic acquisitions and related expenses, subject to mutual agreement. Oberland Capital will receive milestone payments and royalties on future global net sales of troriluzole, capped at a specified multiple of the capital provided.

Biohaven is at the forefront of biopharmaceutical innovation, focusing on discovering and commercializing transformative treatments in critical therapeutic areas. Their extensive clinical programs target a variety of conditions, ranging from epilepsy and mood disorders to cancer therapies and neuroinflammatory diseases. Troriluzole, a third-generation prodrug, modulates glutamate, which is a key neurotransmitter in the human body. Its primary action is to reduce synaptic glutamate levels, offering potential therapeutic benefits for several glutamate-associated diseases.

Oberland Capital, with its deep expertise in healthcare investment structures, offers a broad suite of financial solutions to meet the specific needs of its partners. Their collaboration with Biohaven is poised to create significant value, leveraging their combined healthcare industry knowledge and structured finance experience.

This strategic partnership between Biohaven and Oberland Capital not only aims to advance the development and commercialization of troriluzole but also positions Biohaven to expand its impact across multiple therapeutic areas, potentially revolutionizing treatment options for various rare diseases.