Verona Pharma plc announced it and its wholly-owned subsidiary, Verona Pharma, Inc. have entered into a debt financing facility providing the Company with access to up to $400 million from funds managed by Oxford Finance LLC and Hercules Capital, Inc. The debt facility provides non-dilutive capital and further financial flexibility to support Verona Pharma's continued growth, including the planned commercial launch of ensifentrine, Verona Pharma's first-in-class product candidate, which is under review by the US Food and Drug Administration for the maintenance treatment of chronic obstructive pulmonary disease. The debt facility replaces the existing facility of up to $150 million with an affiliate of Oxford. Under the terms of the debt facility, the Company drew $50 million at closing, and may draw, subject to certain conditions precedent, an additional $100 million upon approval of ensifentrine, $150 million in two separate branches upon achievement of certain net sales milestones and, subject to the approval of the Lenders, $100 million to support strategic initiatives.

Verona Pharma will pay only interest on the outstanding loans under the debt facility for the first 53 months with the outstanding principal of the loans under the debt facility amortized over the subsequent 7 months.