Biohaven has secured a funding deal worth up to $600m from Oberland Capital Management, providing the biotech with non-dilutive capital as it prepares for a potential US launch of troriluzole for spinocerebellar ataxia (SCA).
The financing comes in the form of a note purchase agreement, allowing Oberland to acquire up to $600m of Biohaven’s senior secured notes in multiple tranches. The first tranche of $250m is scheduled to be funded by 30 April, according to the company statement issued on 28 April.
The second tranche – worth $150m – is contingent on US Food and Drug Administration (FDA) approval of troriluzole and subject to additional unspecified conditions. A third tranche of $200m may be made available for strategic acquisitions and related expenses. Oberland Capital will be eligible for a regulatory approval milestone payment, payable quarterly through the end of 2030.
Shares in Biohaven closed 9.6% higher at $21.74 on 28 April, compared to $19.84 at market open.
The deal comes as Biohaven awaits a regulatory decision from the FDA on troriluzole. The candidate is a prodrug of riluzole, which is already approved for amyotrophic lateral sclerosis (ALS). Troriluzole is being evaluated for SCA, a rare neurodegenerative disorder with limited treatment options, characterised by a loss of coordination and balance. The FDA granted the application priority review in February 2025, with a final decision expected in Q3 2025.
The company is positioning the new funding to accelerate commercial planning and advance its broader pipeline, which includes CNS-targeting therapies.
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By GlobalDataBiohaven’s chief financial officer Matt Buten said: “This agreement with Oberland Capital provides us with the support and flexibility to continue advancing our pipeline as we make launch preparations in parallel, and we are excited to accelerate our planning efforts in earnest.”
If it wins approval, troriluzole would represent Biohaven’s first greenlit product since it spun out from its migraine business following a $11.6bn acquisition from Pfizer back in 2022.
However, Biohaven’s path to approval for troriluzole has not been straightforward. The drug failed to meet its primary endpoint in a Phase III trial (NCT03701399) conducted in 2022. Despite the setback, Biohaven shared subsequent analyses revealing benefits for patients with a certain subset of the disease and showed a slowed disease progression. The FDA initially refused to review the application but later accepted a revised submission following the release of this ad hoc data.
Troriluzole’s prospects in Europe are more uncertain. Earlier in April, the European Medicines Agency (EMA) questioned whether the drug’s efficacy meaningfully differed from that of riluzole and challenged its classification as a new active substance. According to the EMA, Biohaven said it would generate additional data before submitting a new application.
The new Biohaven entity was formed after the divestiture of its migraine assets to Pfizer in 2022. That deal included the commercial rights to Nurtec ODT (rimegepant), which generated $1.26bn in global sales in 2024, as per Pfizer’s financials.
In January 2025, Pfizer agreed to pay $59.7m to settle allegations related to illegal payments made by the former Biohaven entity to healthcare providers before its acquisition. The US Department of Justice alleged that Biohaven paid kickbacks to physicians to boost prescriptions of Nurtec, resulting in false claims submitted to Medicare and other federal healthcare programmes between March 2020 and September 2022.
