Royalty Pharma Secures $150 Million for Ascendis's Yorvipath
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Royalty Pharma and Ascendis Pharma's New Funding Agreement
Royalty Pharma plc (Nasdaq: RPRX) and Ascendis Pharma A/S have announced a significant collaboration valued at $150 million focused on the U.S. launch of the innovative treatment, Yorvipath. This funding agreement marks a pivotal moment as it underscores both companies' commitment to advancing the field of biopharmaceuticals, particularly for conditions like hypoparathyroidism.
Significance of the Partnership
Jan Mikkelsen, Ascendis Pharma’s President and CEO, expressed enthusiasm for the partnership, stating, "We are pleased to again partner with Royalty Pharma, a leading funder of innovation across the biopharma industry. This transaction reflects the significant value of Yorvipath and our commitment to reduce our cost of capital while maintaining flexibility to support our global commercial capabilities.” This sentiment highlights the importance of financial partnerships in the successful launch of transformative medical therapies.
Details of the Agreement
The key terms of the agreement specify that Ascendis will receive an upfront payment of $150 million, in return for providing Royalty Pharma with a 3% royalty on U.S. net sales of Yorvipath. Notably, these royalty payments will conclude upon achieving a revenue multiple of 2.0x or 1.65x by the end of 2029.
Expert Guidance and Strategic Planning
Advisors for both companies played crucial roles in structuring the deal. Evercore provided financial consulting to Ascendis, while Latham & Watkins and Mazanti-Andersen served as legal advisors. Royalty Pharma, on the other hand, was supported by Goodwin Procter and Fenwick & West in its legal advisory needs. These professional partnerships contributed to shaping an agreement that emphasizes mutual benefit and innovative funding solutions, a hallmark of Royalty Pharma's approach.
About Royalty Pharma
Founded in 1996, Royalty Pharma has built a reputation as the largest buyer of biopharmaceutical royalties and a primary supporter of innovation in the industry. With its extensive portfolio, which includes over 35 commercial products, Royalty Pharma connects with innovators from academic and research institutions, biotech firms, and major pharmaceutical companies to advance essential therapies. High-profile products under their portfolio include Vertex's Trikafta and Roche's Evrysdi, among others.
About Ascendis Pharma A/S
Ascendis Pharma is dedicated to its mission of developing therapies that significantly improve patients’ lives. By leveraging its innovative TransCon technology platform, Ascendis seeks to create potentially best-in-class therapies that address unmet medical needs. The company's commitment to patients and science is evident, and it operates globally with a strong presence in both Europe and the United States.
Looking Ahead
The collaboration not only bolsters financial resources for Ascendis in launching Yorvipath but also plants a strategic flag in the biopharmaceutical landscape as the first approved treatment for adult hypoparathyroidism in the U.S. This marks a significant step forward in addressing the critical health challenges posed by this condition.
Frequently Asked Questions
What is Yorvipath?
Yorvipath is an FDA-approved treatment for hypoparathyroidism in adults, representing a key advancement in managing this condition.
How much funding did Royalty Pharma provide?
Royalty Pharma entered into a funding agreement worth $150 million to support the launch of Yorvipath.
What is the royalty percentage agreed upon?
Ascendis Pharma will pay Royalty Pharma a royalty of 3% on U.S. net sales of Yorvipath.
When will the royalty payments cease?
The royalty payments will stop once a multiple of 2.0x is reached, or 1.65x by December 31, 2029, if applicable.
Who were the advisors for this agreement?
Evercore acted as financial advisor for Ascendis, while Goodwin Procter and Fenwick & West were legal advisors for Royalty Pharma.
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