The development stage company said it would raise the capital to help fund its collaboration with US specialty pharmaceutical company Tris Pharma.
Both companies have signed an exclusive licensing agreement to develop and commercialise multiple products focused on the US prescription cough and cold market.
Under the terms of the agreement Tris, using its proprietary technology, will develop, on behalf of Vernalis, up to six New Drug Applications (NDAs).
Vernalis told the Stock Exchange this morning that it was now looking to raise the £68.5m before expenses.
Another 50,000,000 new ordinary shares will be issued through the firm placing (representing approximately 14.6 per cent. of the total number of new ordinary shares). A further 292,528,564 new ordinary shares will be issued through the placing and open offer (representing the remaining 85.4 per cent).
A total of £65.9m would be raised after expenses, said Vernalis.
Ian Garland, chief executive officer of the Wokingham company, said: “Today’s announcement represents a very substantial step in Vernalis’ transformation into a diversified, profitable and self-sustaining specialty pharmaceutical company.
“We believe the use of Tris’ already commercially validated technology to produce extended release formulations of existing drugs offers a low risk and potentially rapid route to obtain approved products with significant commercial potential in the US prescription cough/cold market.”