Business
PRTC Gets Up To $500M From RPRX For KarXT Royalty
PRTC Gets Up To $500M From RPRX For KarXT Royalty.
About this update from Puretech Health Plc
[{"type":"text","content":"\n \n \n \n 23 March 2023\n \n \n \n \n PureTech Health plc\n \n \n \n \n \n \n \n \n \n PureTech Health and Royalty Pharma Enter into KarXT Royalty Agreement for up to $500 Million\n \n \n \n \n \n \n \n \n \n Royalty Pharma has acquired\n \n \n an interest in\n \n \n PureTech's royalty in Karuna Therapeutics' KarXT\n \n \n ; Royalty Pharma and PureTech will share in royalties above certain annual sales thresholds.\n \n \n \n \n \n \n \n \n \n PureTech retains its current equity stake in Karuna in addition to milestone payments and 20% of sublicense revenues due to PureTech. \n \n \n \n \n \n \n \n \n \n Transaction provides further non-dilutive capital for PureTech's growing and rapidly advancing Wholly Owned Pipeline, with five clinical-stage candidates expected by the end of 2023.\n \n \n \n \n \n \n \n \n PureTech Health plc\n \n \n (Nasdaq: PRTC, LSE: PRTC) (\"PureTech\" or the \"Company\"), a clinical-stage biotherapeutics company dedicated to changing the treatment paradigm for devastating diseases, and Royalty Pharma (Nasdaq: RPRX), the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the life sciences industry, today announced that Royalty Pharma has acquired an interest in PureTech's royalty in Karuna Therapeutics' KarXT for up to $500 million, with $100 million in cash up front and up to $400 million in additional payments contingent on the achievement of certain regulatory and commercial milestones.\n \n \n \n \n \n \"We are delighted to partner with PureTech, which began a remarkable innovation story with KarXT that has demonstrated an impressive clinical profile in Phase 3,\" said Pablo Legorreta, Royalty Pharma's Founder and Chief Executive Officer. \"We believe this important therapy will have a significant impact on patients with schizophrenia if approved by the FDA. This medicine is a notable addition to our royalty portfolio and is well aligned with our strategy of investing in breakthrough therapies that address areas of high unmet medical need.\"\n \n \n \n \n \n \"We've seen extraordinary clinical success demonstrated by KarXT, which, if approved, will be the first new mechanism for treating schizophrenia in more than fifty years. KarXT has now demonstrated efficacy in registration enabling studies and is heralded as a pot...