Press release
Royalty Pharma Announces Agreement to Purchase Up to $1.5 Billion of PTC Therapeutics’ Royalty on Evrysdi
Royalty Pharma purchases a portion of royalties on Roche’s Evrysdi for $1.0 billion upfrontPTC Therapeutics has option to sell rest of royalty for up to $500
About this update from Royalty Pharma Plc
[{"type":"text","content":"Royalty Pharma purchases a portion of royalties on Roche’s Evrysdi for $1.0 billion upfrontPTC Therapeutics has option to sell rest of royalty for up to $500 million; Royalty Pharma has option to buy half of rest of royalty for up to $250 millionTransaction expected to enhance long-term Adjusted Cash Receipts growth (non-GAAP)Royalty Pharma to host conference call today, Thursday, October 19 at 9:00am EDT NEW YORK, Oct. 19, 2023 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) announced today an agreement with PTC Therapeutics, Inc. to acquire additional royalties on Roche’s Evrysdi for $1.0 billion upfront. The agreement includes options for PTC to sell up to all of its retained royalties on Evrysdi for up to $500 million or for Royalty Pharma to acquire half of such retained royalties for up to $250 million at a later date. Evrysdi, marketed by Roche, is an orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy (SMA). Evrysdi was approved by the U.S. Food and Drug Administration (FDA) in 2020 and has treated over 11,000 patients worldwide. In 2022, Evrysdi generated sales of approximately CHF 1.1 billion ($1.2 billion), an increase of 87% at constant exchange rates versus the prior year. “We are excited to acquire an additional royalty interest in Evrysdi, a convenient, oral therapy that has transformed the lives of SMA patients worldwide,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “This is our second transaction with PTC, which builds on our longstanding partnership, and highlights our ability to structure creative, win-win funding solutions for our partners. Further, our unmatched scale and deep knowledge of SMA positioned us to provide PTC with substantial capital in a timely fashion, another unique aspect of our business model. This transaction is expected to further enhance Royalty Pharma’s long-term growth and diversification. We remain incredibly excited for our future given our robust transaction pipeline.” “This transaction reflects the significant value of Evrysdi, a medicine we are proud to have helped discover and develop in collaboration with the Spinal Muscular Atrophy Foundation and Roche,” said Matthew Klein, M.D., Chief Executive Officer of PTC Therapeutics. “We are also pleased to strengthen our partnership with...