Royalty Pharma and Ascendis Pharma Enter Into $150 Million Royalty Funding Agreement
Proceeds to support continued development and commercialization of Endocrine Rare Disease products, including the Yorvipath U.S. commercial launch, and general corporate purposes
NEW YORK and COPENHAGEN, Denmark, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) and Ascendis Pharma A/S (Nasdaq: ASND) today announced that Royalty Pharma and Ascendis Pharma
Bone Diseases A/S, a wholly-owned subsidiary of Ascendis Pharma A/S, has entered into a $150 million capped synthetic royalty funding agreement based on U.S. net sales of Yorvipath.
“We are pleased to again partner with Royalty Pharma, a leading funder of innovation across the biopharma industry, as we launch Yorvipath in the U.S. as the first and only FDA approved treatment of hypoparathyroidism in adults,” said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. “This transaction reflects the significant value of Yorvipath and our commitment to reduce our cost of capital while maintaining flexibility to support our global commercial capabilities.”
“We are delighted to expand our partnership with Ascendis and provide funding to support the launch of Yorvipath, an important advancement in treating the underlying cause of hypoparathyroidism in adults,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “This is now our second transaction with Ascendis, highlighting our partner centric approach and ability to structure creative, win-win funding solutions, which is a unique aspect of our business model.”
Under the terms of the agreement, Ascendis receives an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of Yorvipath. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 2.0x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.
Advisors
Evercore acted as financial advisor and Latham & Watkins and Mazanti-Andersen acted as legal advisors to Ascendis on the transaction. Goodwin Procter and Fenwick & West acted as legal advisors to Royalty Pharma.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 16 development-stage product candidates.