Ultragenyx Announces Sale of Future European Royalties on Crysvita (burosumab) for $320 Million to Royalty Pharma

NOVATO, Calif. and NEW YORK, Dec. 18, 2019 (GLOBE NEWSWIRE) -- Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE), a biopharmaceutical company focused on the development of novel products for rare and ultra-rare diseases, and Royalty Pharma today announced that Ultragenyx has sold to Royalty Pharma for $320 million a royalty right due to Ultragenyx from Kyowa Kirin Co., Ltd for the net sales of Crysvita (burosumab) in the European Union (EU), the United Kingdom (UK), and Switzerland. Crysvita has received conditional marketing authorization in Europe for the treatment of X-linked hypophosphatemia (XLH) with radiographic evidence of bone disease in children 1 year of age and older and adolescents with growing skeletons, and an application for the expanded use in adults with XLH is currently under review by the European Medicines Agency.  

The agreement will automatically expire in the event aggregate royalty payments received by Royalty Pharma are equal to or greater than 1.9 times the purchase price prior to December 31, 2030, or in the event aggregate royalty payments are equal to or greater than 2.5 times the purchase price if the prior threshold is not met by the end of 2030. Once the threshold amount has been met, the EU, UK, and Switzerland royalty payments will revert back to Ultragenyx.

“This non-dilutive royalty financing provides Ultragenyx with capital to support our strong launches of Crysvita in North America and Latin America and Mespevii worldwide, as well as the advancement of our clinical and translational research programs,” said Shalini Sharp, Chief Financial Officer of Ultragenyx. “Crysvita is the first treatment option for XLH that targets the underlying cause of the disease and we are pleased that Royalty Pharma, a recognized leader in providing innovative capital in life sciences, has invested in the future of this therapy.”

Royalty Pharma’s CEO, Pablo Legorreta, stated, “We are pleased to have the opportunity to work with Ultragenyx on this win-win transaction, in which Ultragenyx was able to pull forward capital from a passive, EU royalty stream to power its current strategic plan. Royalty Pharma adds a high quality asset that is an excellent addition to our diversified portfolio of leading biopharmaceutical royalties.”

Perella Weinberg Partners LP and J. Wood Capital Advisors LLC acted as financial advisors and Gibson, Dunn & Crutcher LLP acted as legal advisor to Ultragenyx on the transaction.  Goodwin Procter LLP and Maiwald Patentanwalts GmbH acted as legal advisors to Royalty Pharma.