Royalty Pharma Acquires Additional Royalty Interest From the Cystic Fibrosis Foundation
November 02 2020 - 7:30AM
Royalty Pharma plc (Nasdaq: RPRX) announced today an agreement to
acquire the residual royalty interest in Vertex Pharmaceuticals,
Inc.’s cystic fibrosis (CF) treatments owned by the Cystic Fibrosis
Foundation. The agreement includes an upfront payment of $575
million and a potential milestone payment of $75 million.
Pablo Legorreta, Royalty Pharma’s Founder and
Chief Executive Officer, stated, “We are excited to build on our
long-standing relationship with the CF Foundation. Our initial
landmark funding transaction in 2014 enabled the Foundation to
expand its efforts to develop new lifesaving therapies and improve
care for patients, and exemplified our leadership role as an
innovator in funding the biopharma ecosystem. We are similarly
optimistic that today’s transaction will further support the CF
Foundation’s work to fund research and drug development and advance
high-quality, specialized CF care.”
As part of previous agreements with the CF
Foundation, Royalty Pharma purchased all of the CF Foundation’s
royalty interests on Vertex’s CF franchise. Under the terms of
those agreements, Royalty Pharma was obligated to pay the CF
Foundation 50% of royalties attributable to revenue over $5.8
billion in any calendar year. Today’s agreement eliminates this
obligation and entitles Royalty Pharma to all royalties above the
previous revenue threshold. The Vertex CF franchise generated net
revenues totalling over $4.0 billion in 2019. The royalties under
this agreement are perpetual and not tied to patent
expirations.
Relative to Royalty Pharma’s existing business,
this transaction is expected to enhance the company’s long-term
Adjusted Cash Receipts and Adjusted Cash Flow growth.
MTS Health Partners and Mintz Levin acted as
advisors to the Cystic Fibrosis Foundation on the transaction and
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, Orkambi, Symdeko and Trikafta, and
three development-stage product candidates.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-2295ir@royaltypharma.com
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