– Transaction builds on DRI's history of
investing in innovative therapies for the treatment of
hematological conditions –
– Creative deal structure provides DRI with
option to increase interest in the future –
– Fast-growing product with long-term horizon
extends the duration of DRI's cash flows –
TORONTO, July 21,
2022 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX:
DHT.U) ("DRI" or "the Trust") today announced that a wholly-owned
subsidiary of DRI has acquired a royalty interest in pegcetacoplan
for an upfront purchase price of US$24.5
million, with an option to increase its interest in
pegcetacoplan in the future.
Pegcetacoplan is the active molecule in the first targeted C3
therapy for use in adults with Paroxysmal Nocturnal Hemoglobinuria
("PNH") and was approved by the US Food and Drug Administration
("FDA") and the European Medicines Agency in 2021. It is marketed
in the US by biopharmaceutical company, Apellis Pharmaceuticals
Inc. ("Apellis"), under the brand name Empaveli and outside the US
by rare disease-focused biopharmaceutical company, Swedish Orphan
Biovitrum AB, including in the EU under the brand name
Aspaveli.
"We are very pleased to announce the addition of pegcetacoplan
to our portfolio," said Behzad
Khosrowshahi, Chief Executive Officer of DRI Healthcare
Trust. "Empaveli and Aspaveli provide a novel treatment option for
a very serious disease and represent a significant advancement in
the standard of care. The innovative option element of the deal
structure gives us the ability to increase the Trust's exposure to
pegcetacoplan should we choose to do so. This transaction provides
us with another growth asset with a long-term horizon, extending
the duration of our portfolio to approximately nine years."
Pegcetacoplan is also in development for additional pipeline
indications including Geographic Atrophy ("GA"), Cold Agglutinin
Disease and C3 Glomerulopathy. The FDA has granted fast-track
status and has accepted and granted priority review of a New Drug
Application submitted by Apellis for pegcetacoplan for the
treatment of GA, with a Prescription Drug User Fee Act (PDUFA)
target action date of November 26,
2022. If approved, pegcetacoplan would be the first drug
approved for the treatment of GA.
The transaction entitles DRI to a <1% royalty on the
worldwide net sales of pegcetacoplan, subject to a cap at net sales
of US$500 million in each calendar
year, above which DRI will not be entitled to any royalty. As part
of the transaction, DRI has an option to increase the annual sales
cap to US$1.1 billion in return for a
one-time payment by DRI of US$21.0
million. DRI is entitled to receive quarterly royalty
payments in respect of net sales of all formulations of
pegcetacoplan commencing January 1,
2022 and will be paid on a two-quarter lag. DRI's royalty
entitlement will step down upon the expiry of the relevant patents
in each jurisdiction and the royalty term is expected to expire in
the US in the fourth quarter of 2031 and in the EU in the second
quarter of 2032.
About Pegcetacoplan
Pegcetacoplan is a 15-amino acid cyclic peptide conjugated to
each end of a PEG linker that binds to and inhibits C3 activation.
In 2021, Empaveli was the first targeted C3 therapy approved for IL
and 2L treatment for adults with PNH in the United States. In the EU, Aspaveli is only
approved for 2L use for PNH patients who are still anemic after
treatment with a C5 inhibitor for at least three months.
About Paroxysmal Nocturnal
Hemoglobinuria
PNH is a rare, chronic, life-threatening genetic disorder
characterized by complement pathway-mediated destruction of red
blood cells. About half of clinically meaningful PNH patients have
severe PNH with a degree of hemolysis that requires frequent
transfusions. Symptoms of PNH include fatigue due to low hemoglobin
levels, anemia and thrombosis. Treatments include transfusions,
anti-thrombotic agents and complement cascade modulators.
Approximately 30% of patients on the current standard of care are
not well served and remain transfusion dependent. Additionally,
another 30% of patients experience extravascular hemolysis.
About DRI Healthcare
Trust
DRI Healthcare Trust provides unitholders with differentiated
exposure to the anticipated growth in the global pharmaceuticals
and biotechnology markets. Our business model is focused on
managing and growing a diversified portfolio of pharmaceutical
royalties with the aim to deliver attractive growth in cash royalty
receipts over the long-term. DRI Healthcare Trust is an
unincorporated open-ended trust governed by the laws of the
Province of Ontario, externally
managed by its manager, DRI Capital Inc., a pioneer in global
pharmaceutical royalty monetization. Throughout its history, DRI
Capital has provided capital to biopharma innovators, including
inventors, institutions, and biopharma companies, building a
diversified portfolio of interests in medicines that have a
demonstrable positive impact on the world, acquiring dependable,
patent-protected cash flow streams derived from the sales of those
important drugs. Active across a broad range of therapeutic areas,
DRI Capital has deployed more than $2
billion, acquiring more than 60 royalties on 40-plus drugs,
including Eylea, Spinraza, Zytiga, Remicade, Keytruda and Stelara.
DRI Healthcare Trust's units are listed and trade on the Toronto
Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in
U.S. dollars under the symbol "DHT.U". To learn more visit
drihealthcaretrust.com.
Caution concerning forward-looking
statements
This news release may contain forward-looking information within
the meaning of applicable securities legislation. Forward-looking
information generally can be identified by the use of
forward-looking words such as "expect", "continue", "anticipate",
"intend", "aim", "plan", "believe", "budget", "estimate",
"forecast", "foresee", "close to", "target" or negative versions
thereof and similar expressions. Some of the specific
forward-looking information in this news release may include, among
other things, statements that if FDA approval is successful,
pegcetacoplan would be the first drug approved for Geographic
Atrophy, and that our royalty entitlement in pegcetacoplan will
step down upon the expiry of the relevant patent in each
jurisdiction and is expected to expire in the US in the fourth
quarter of 2031 and in the EU in the second quarter of 2032.
Forward-looking information is based on a number of assumptions and
is subject to a number of risks and uncertainties, many of which
are beyond the Trust's control that could cause actual results to
differ materially from those that are disclosed in or implied by
such forward-looking information. These risks and uncertainties
include, but are not limited to, those that are disclosed in the
Trust's most recent annual information form. The forward-looking
information in this news release is based on our assumptions
regarding the performance of our royalty interest in Empaveli®,
including with respect to worldwide sales. All forward-looking
information in this news release speaks as of the date of this news
release. The Trust does not undertake to update any such
forward-looking information whether as a result of new information,
future events or otherwise except as required by law. Additional
information about these assumptions and risks and uncertainties is
contained in the Trust's filings with securities regulators,
including its latest annual information form and Management's
Discussion and Analysis. These filings are also available at the
Trust's website at dricapital.com.
SOURCE DRI Healthcare Trust