Ian Garland

Pharmaceutical company Vernalis at Granta Park has signed a deal with a US firm to develop new drugs to treat coughs and colds.

It plans to raise £65.9 million via an oversubscribed share placing to fund the product development and commercialisation – and also to develop other new drugs.

The new licensing agreement is with Tris Pharma, based in New Jersey. Tris will develop – on behalf of Vernalis – up to six new drug applications (NDAs).

Vernalis will acquire and then commercialise the products on approval in the US – and pay a sales-based royalty to Tris.

“This transaction is fundamental in transitioning Vernalis into a diversified and self-sustaining pharmaceutical company,” said Vernalis chief executive Ian Garland.

“The US cough/cold prescription market is a market that we know extremely well and Tris is a uniquely positioned development partner, with proven capabilities validated by multiple NDA approvals.”