Biohaven’s Troriluzole gets US$600M boost for rare disease treatment

USA—Biohaven, a clinical-stage biopharmaceutical company, has secured a major funding deal worth up to US$600 million from Oberland Capital Management.

This investment provides Biohaven with non-dilutive capital, meaning the company’s existing shareholders will not see their ownership diluted.

The funding comes at a critical time as Biohaven prepares for the potential U.S. launch of troriluzole, a treatment candidate for spinocerebellar ataxia (SCA)-a rare, progressive neurological disorder that currently has no approved therapies.

The deal is structured as a Note Purchase Agreement, allowing Oberland Capital to purchase up to US$600 million of Biohaven’s senior secured notes in several phases.

The first tranche, totaling US$250 million, is set to be funded by April 30, 2025.

A second tranche of US$150 million will become available if troriluzole receives approval from the U.S. Food and Drug Administration (FDA) and other conditions are met.

Additionally, up to US$200 million may be provided for strategic acquisitions and related expenses, pending mutual agreement between the parties.

In return for this investment, Oberland Capital will receive milestone payments tied to regulatory approvals, payable quarterly through the end of 2030.

They will also earn tiered, single-digit royalties on global net sales of troriluzole for up to 10 years, with all payments capped at a multiple of the amounts they fund.

This influx of capital is expected to strengthen Biohaven’s ability to advance its clinical programs and accelerate commercial planning, particularly as the company awaits an FDA decision on troriluzole.

The FDA granted the drug priority review in February 2025, with a final decision anticipated in the third quarter of 2025.

Troriluzole is a prodrug of riluzole, which is already approved for amyotrophic lateral sclerosis (ALS), but Biohaven is targeting SCA, a condition with few treatment options.

Biohaven’s journey with troriluzole has faced challenges. The drug did not meet its primary endpoint in a Phase III trial in 2022.

However, further analyses indicated benefits for a subset of patients, prompting the FDA to accept a revised application after initially refusing to review it.

Meanwhile, prospects for approval in Europe remain uncertain, as the European Medicines Agency has questioned the drug’s efficacy compared to riluzole and its status as a new active substance.

The new funding positions Biohaven to not only pursue the U.S. launch of troriluzole but also to support its broader pipeline of therapies targeting central nervous system disorders.

The company’s CFO, Matt Buten, highlighted that the agreement with Oberland Capital provides the flexibility and support needed to advance Biohaven’s goals as it prepares for potential product launches.

Shares of Biohaven responded positively to the news, closing up nearly 10% on April 28, 2025, reflecting investor optimism about the company’s future.