– Transaction pushes total committed capital
to over US$1 billion since IPO
–
– Second Xenpozyme royalty increases exposure
to rare diseases –
– Long-term asset further increases portfolio
duration –
TORONTO, July 2, 2024
/CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the
"Trust"), a global leader in providing financing to advance
innovation in the life sciences industry, has acquired a second
royalty interest in the worldwide net sales of Xenpozyme (olipudase
alfa) from HLS Therapeutics Inc. ("HLS") for an aggregate purchase
price of up to US$45.75 million,
comprised of a US$13.25 million
upfront payment and up to US$32.5
million in performance-based outbound milestone
payments.
Xenpozyme is the only product developed and approved for the
treatment of non-central nervous system manifestations of acid
sphingomyelinase deficiency ("ASMD"), also known as Niemann-Pick
disease, in pediatric and adult patients. Xenpozyme was approved in
Japan in March 2022, by the European Commission in
June 2022, and by the U.S. Food and
Drug Administration in August 2022.
There are no other products currently known to be in late-stage
development for the treatment of ASMD. Xenpozyme is marketed
worldwide by Sanofi S.A. ("Sanofi").
"Xenpozyme is an important treatment that materially increases
the quality of life of patients suffering from ASMD," said
Behzad Khosrowshahi, the Trust's
Chief Executive Officer. "The drug has performed well since
our initial investment in October
2022, and we are pleased to increase our exposure to this
rare disease therapy. Sanofi is the market leader in
commercialization of enzyme replacement therapies ("ERT") and we
believe they can facilitate access to the drug for the hundreds of
ASMD patients around the globe. This long-tailed asset helps
increase our portfolio duration, providing value for unitholders
over the long term."
Speaking on behalf of the investment manager, Chief Investment
Officer Navin Jacob commented, "ASMD
is an extremely rare progressive genetic disease with significant
morbidity and mortality, especially among infants and children.
Signs and symptoms of ASMD may include enlarged spleen or liver,
difficulty breathing, lung infections, and unusual bruising or
bleeding, among others. Xenpozyme aligns with our investment
criteria of treating serious disease areas and is a drug that
benefits doctors, payors and most importantly, patients."
The transaction entitles the Trust to an approximately 1%
royalty on worldwide sales of Xenpozyme. The Trust will receive all
royalties up to US$6.3 million in
royalty receipts per calendar year, with a 50% step down for all
royalty receipts above this amount. Royalties will be paid
bi-annually on a two-quarter lag from the half year period when
sales occur. We estimate that the Trust will receive its first
royalty from this entitlement in Q2 2025 based on third and fourth
quarter 2024 sales.
Upon achievement of certain thresholds of worldwide net sales of
Xenpozyme, the Trust is obligated to pay up to US$32.5 million in milestone payments subject to
the achievement of performance-based thresholds.
About Xenpozyme
Xenpozyme addresses a significant unmet need in ASMD patients.
It is an intravenously infused recombinant human acid
sphingomyelinase enzyme intended to directly replace ASM expression
in patients with ASMD, thereby improving clinical manifestations of
the disease. Xenpozyme is the first and only investigational ERT
that was evaluated and approved for the treatment of non-central
nervous system manifestations of ASMD.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI
Healthcare"), the pioneer in global pharmaceutical royalty
monetization with a 35-year history of accelerating innovation by
providing capital to inventors, academic institutions and biopharma
companies. Since its founding in 1989, DRI Healthcare has deployed
more than US$3.0 billion, acquiring
more than 70 royalties on 45-plus drugs, including Eylea, Keytruda,
Orserdu, Spinraza, Stelara, Vonjo, Zejula and Zytiga. 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
drihealthcare.com or follow us on LinkedIn.
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 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 regarding the timing of
the first royalty payment pursuant to the additional royalty
interest in Xenpozyme, our royalty cash receipts, the timing of
royalty payments anticipated royalty income and anticipated sales
of the products underlying our royalties. This forward-looking
information is subject to a number of assumptions, including, but
not limited to: statements regarding the terms and conditions of
our transactions are based on the transaction documentation,
statements with respect to royalty income, total income and future
sales of the products underlying our existing royalties are based
on assumptions with respect to timing of generic drugs entering the
market, competitor drugs receiving approval and entering the
market, and regulatory measures under the Inflation Reduction Act,
and are 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
anticipated royalty terms for products in our portfolio may be
shorter than the period of patent protection for the applicable
product, depending on many factors, including the entry of generic
drugs into the marketplace and competition, all of which are
outside our control. 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 on the Trust's website at
drihealthcare.com.
SOURCE DRI Healthcare Trust