Royalty Pharma Acquires Royalty Interest in Risdiplam From PTC Therapeutics
July 20 2020 - 7:45AM
Royalty Pharma plc (Nasdaq: RPRX) announced today an agreement with
PTC Therapeutics, Inc. (Nasdaq: PTCT) to acquire a portion of PTC’s
royalty interest in risdiplam for a one-time payment of $650
million.
Risdiplam, to be marketed by Roche, is an
investigational, orally administered survival motor neuron-2 (SMN2)
splicing modifier for the treatment of spinal muscular atrophy
(SMA). SMA is a severe, inherited, progressive neuromuscular
disease that causes devastating muscle atrophy and disease-related
complications. It is the most common genetic cause of infant
mortality and one of the most common rare diseases, affecting
approximately one in 11,000 babies.
Pablo Legorreta, Royalty Pharma’s Founder and
Chief Executive Officer, stated, “Risdiplam is consistent with our
focus on high value, differentiated therapeutics addressing
diseases with high unmet medical need. We recognize the value and
importance of an oral therapy for the treatment of all types of
SMA. We are delighted to partner with PTC and to help fund their
innovative pipeline of treatments for rare diseases.”
“The discovery, development and expected
commercialization of risdiplam exemplifies how PTC’s strengths in
novel scientific approaches to diseases with high unmet needs can
generate value for the benefit of all of our stakeholders,” said
Stuart W. Peltz, Ph.D., Chief Executive Officer of PTC
Therapeutics. “Today’s announcement of our strategic partnership
with Royalty Pharma brings forward significant, non-dilutive
capital to drive further innovation and growth across our robust
and diverse rare disorder portfolio.”
The risdiplam NDA for the treatment of Types 1,
2 and 3 spinal muscular atrophy (SMA) is under Priority Review by
the U.S. Food and Drug Administration, with a PDUFA date of August
24, 2020. A Marketing Authorization Application (MAA) is planned
for submission to the European Medicines Agency (EMA), as well as
filings in other international markets. The risdiplam SMA program
is a collaboration between PTC, the SMA Foundation, and Roche.
Relative to Royalty Pharma’s existing business,
the risdiplam royalty acquisition is expected to have minimal
impact on its Adjusted cash receipts and Adjusted cash flow in 2020
and 2021, with growing accretion beyond 2021 resulting in enhanced
long-term growth. Royalty Pharma is purchasing approximately 43% of
the royalty up to a specified amount. PTC has previously disclosed
that it is entitled to tiered royalties ranging from 8% to 16% on
worldwide net product sales of risdiplam.
Wilmer Hale acted as legal advisor to PTC
Therapeutics on the transaction. Goodwin Procter, Dechert and
Maiwald 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
not-for-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 45 commercial products, including AbbVie and
J&J’s Imbruvica, Astellas and Pfizer’s Xtandi, Biogen’s
Tysabri, Gilead’s HIV franchise, Merck’s Januvia, Novartis’
Promacta, and Vertex’s Kalydeco, Symdeko and Trikafta, and four
development-stage product candidates. For more information, visit
www.royaltypharma.com.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-2295ir@royaltypharma.com
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