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Biotech / Medical : Elan Corporation, plc (ELN) -- Ignore unavailable to you. Want to Upgrade?

To: Icebrg who wrote (1950)	3/28/2002 6:42:09 AM
From: Icebrg	Read Replies (2) \| Respond to of 10345

And just to make things complete. This is the old PR where Vernalis informed about the loan. From the way this was structured, it seems that the loan more than anything else was given as an advance payment on future royalty rates. 13 December 2000 Vernalis announces expansion of frovatriptan collaboration and new investment by Elan Vernalis Group plc ("Vernalis" LSE: VER) today announced plans for an expansion of its collaboration with Elan Corporation plc (Elan) on frovatriptan, Vernalis' 5HT1B/1D agonist for the acute treatment of migraine, for which Elan licensed North American marketing rights in October 1998, and for a further investment by Elan in Vernalis. Vernalis will conduct a series of Phase IIIb / IV clinical studies with frovatriptan, which was granted "approvable " status by the US Food and Drug Administration ("FDA") in May 2000, to expand upon the distinctive characteristics of the drug that emerged during its clinical development programme. These studies are expected to involve around 6,500 migraine sufferers. Phase IIIb / IV clinical studies are typically carried out post-regulatory approval, and are designed to evaluate particular features of a drug's profile in a wider patient population. Elan will make a non-convertible, interest bearing term loan of $10 million to Vernalis. At its option, Elan may elect, within 30 days following receipt of US marketing approval, to apply the full amount of the loan to buy out a proportion of the royalty due to Vernalis on North American sales of frovatriptan. In addition, Elan will subscribe for two million new ordinary Vernalis shares, representing approximately 4.94% of Vernalis' current issued share capital, at a price of 248 pence per share. This new investment of £4.96 million will increase Elan's total holding in Vernalis to approximately 6.92% of the enlarged issued share capital. Elan will also pay certain additional post-approval milestones to Vernalis. Commenting on the new arrangements, Robert Mansfield, Chief Executive of Vernalis, said, "We are delighted by Elan's strong commitment to frovatriptan, and we are looking forward to working closely with them on the further characterisation of this exciting new migraine treatment". Vernalis is an emerging biopharmaceutical company, focussed on Neuroscience and CNS Medicine. Vernalis has over 100 research and development staff working across a number of therapeutic areas, including obesity, migraine, Parkinson's disease, neuropathic pain and stroke.