Ascendis Pharma Partners with Royalty Pharma in $150 Million Deal
![Ascendis Pharma Partners with Royalty Pharma in $150 Million Deal](https://investorshangout.com/images/blog/ihnews-Ascendis%20Pharma%20Partners%20with%20Royalty%20Pharma%20in%20%24150%20Million%20Deal.jpg)
Ascendis Pharma and Royalty Pharma Launch $150 Million Collaboration
In an exciting development in the biopharmaceutical sector, Ascendis Pharma A/S (NASDAQ: ASND) and Royalty Pharma plc have entered into a transformative agreement valued at $150 million. This partnership spotlights Ascendis Pharma Bone Diseases A/S, a dedicated arm of Ascendis Pharma, and focuses on the financial backing for their promising treatment, YORVIPATH.
Significance of the Royalty Funding Agreement
This $150 million capped synthetic royalty funding agreement is particularly noteworthy as it is contingent on the U.S. net sales of YORVIPATH, which has the distinction of being the first FDA-approved treatment for hypoparathyroidism in adults. Jan Mikkelsen, the President and CEO of Ascendis Pharma, expressed enthusiasm for this collaboration, recognizing Royalty Pharma as a pivotal player in funding innovation throughout the biopharma landscape.
YORVIPATH: A Breakthrough Treatment
YORVIPATH represents a substantial advancement in managing hypoparathyroidism – a condition characterized by inadequate levels of parathyroid hormone, leading to imbalanced calcium levels in the body. The introduction of YORVIPATH aims to address the unique medical needs of adults suffering from this condition, marking a significant milestone in patient care.
Statements from Leadership
Pablo Legorreta, the founder, and CEO of Royalty Pharma, remarked on the partnership's value, emphasizing their commitment to fostering innovation that significantly enhances patient outcomes. By providing critical funding to support the market launch of YORVIPATH, Royalty Pharma reiterates their partner-centered ethos and showcases their ability to create mutually beneficial funding solutions.
Financial Aspects of the Agreement
Under the outlined terms, Ascendis Pharma is to receive an immediate upfront payment of $150 million. In return, they will pay a 3% royalty based on the U.S. net sales of YORVIPATH until a total return of 2.0 times the initial investment is achieved. If the projected sale figures are exceeded, and Royalty Pharma is compensated accordingly by December 31, 2029, the rate may shift to 1.65 times.
Expert Guidance in the Deal
Financial advisory expertise in this transaction was provided by Evercore, with legal advice rendered by Latham & Watkins and Mazanti-Andersen for Ascendis Pharma, while Royalty Pharma received guidance from Goodwin Procter and Fenwick & West.
About the Companies Involved
Ascendis Pharma is a pioneer in biopharmaceutical innovation, utilizing its proprietary TransCon technology platform to enhance patient lives. They are dedicated to creating potentially best-in-class therapies supported by their passion for science and commitment to patient care.
Royalty Pharma’s Role in Healthcare Innovation
Established in 1996, Royalty Pharma is recognized as a leading buyer of biopharmaceutical royalties, supporting innovation through funding arrangements with organizations ranging from educational institutions to large pharmaceutical companies. Their diverse portfolio includes royalties on over 35 commercial products, reinforcing their influence in expanding access to critical treatments.
Frequently Asked Questions
What does the funding agreement entail?
The agreement provides Ascendis Pharma with $150 million in exchange for a percentage of net sales from YORVIPATH, which targets hypoparathyroidism treatment.
How will this affect YORVIPATH's market presence?
The funding bolsters the launch and market capabilities of YORVIPATH, enabling Ascendis Pharma to provide this essential treatment effectively.
What technologies does Ascendis Pharma use?
Ascendis Pharma employs its innovative TransCon technology to develop therapies aimed at addressing significant medical needs.
Where is Ascendis Pharma based?
Ascendis Pharma is headquartered in Copenhagen, Denmark, with additional offices in Europe and the United States to support its global operations.
Can you explain Royalty Pharma's role?
Royalty Pharma finances innovations in the biopharmaceutical realm by acquiring royalties and co-funding late-stage clinical trials, significantly contributing to the industry's development.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
Related Articles
- MediciNova's MN-166 Abstract Accepted for NEALS 2024 Meeting
- Degree Deodorant Collaborates with Giannis Antetokounmpo
- Veritiv Signs Agreement to Enhance Packaging Solutions
- Upsolve Secures $4.2 Million Grant to Develop Financial Counsel
- VELMENI® Achieves FDA Clearance for Cutting-Edge Dental AI
- Telix Pharmaceuticals' TLX101 Shows Promise for Glioblastoma
- Intel Faces Challenges as Shares Plummet Amid DJIA Concerns
- Highland Opportunities and Income Fund Monthly Distribution Update
- Whataburger Announces Leadership Transition with New CEO
- District Cooling Market Growth Driven by Urbanization and AI
- The M Factor: Groundbreaking Documentary on Menopause Premieres
- Restaurant Brands International Inc. Announces Notes Offering Details
- Oldcastle BuildingEnvelope Enhances StormMax® Products for Protection
- Business First and Oakwood Bancshares Merger Approved
- Market Updates: Insights on Recent US Stock Trends
- AI Video Generator Market Expected to Hit USD 2980 Million
- Medical Billing Outsourcing Market Set for Explosive Growth
- Bird Construction to Host Investor Day, Unveils Strategic Plan
- Cipher Mining Reports Robust August 2024 Operational Results
- NCL Corporation Ltd. Prices $315 Million Senior Notes Offering
- Franklin Resources, Inc. Investigation by Pomerantz Law Firm
- Investigation Launched for WEBTOON Entertainment Investors
- Investigation of iLearningEngines, Inc. Over Securities Issues
- Investigation into Bumble Inc. by Pomerantz Law Firm - BMBL
- Ibotta Inc. Under Investigation for Alleged Securities Fraud
Recent Articles
- Cipher Mining Reports Robust August 2024 Operational Results
- Investigation Launched into Mynaric AG by Pomerantz Law Firm
- Mexican Stock Market Experiences Significant Decline Today
- Verizon Stock Surges on Anticipation of Dividend Increase
- Smart-Connected Pet Collars Market Set for Significant Growth
- Akebia Therapeutics Offers Inducement Grants for New Employee
- Graphic Packaging Holding Company Operating Conditions and Outlook
- Grocery Outlet Introduces Exciting GO Brands Program
- Cedar Creek Energy Recognized as MnSEIA Member of the Year
- Sun Communities, Inc. Announces Q3 2024 Distribution Details
- Blue Biofuels Innovates Ethanol Production Using CTS Technology
- Atrium Health and Blue Zones Collaborate for Better Well-Being
- Tareen Dermatology's Commitment to Community Through Charity
- Electric Grid Upgrades for Enhanced Reliability in New Jersey
- Century Complete Launches Affordable New Homes in Radcliff
- Teleperformance Triumphs with Best Remote Agent Program Award
- Beeyou.tv Unveils New Features for Creators at IBC 2024 Event
- NYSIF Releases Vital Long Covid Employer Guidance
- Tropical Cheese Industries Considers Sale at $500 Million Value
- Construction Equipment Market: Trends and Projections to FY30
- BCFNJC's What We Heard Report from First Nations Justice Forum
- Education ERP Market Growth Projected to USD 75.84 Billion
- QNB Corp. Successfully Completes $40 Million Subordinated Notes Offering
- Axiom Medical Welcomes Kevin Campbell as CFO to Lead Growth
- Blue Federal Credit Union Achieves Prestigious Awards in 2024