Ascendis Pharma and Royalty Pharma Enter into $150 Million Royalty Funding Agreement
Ascendis Pharma and Royalty Pharma have entered into a $150 million capped synthetic royalty funding agreement based on U.S. net sales of YORVIPATH. This deal supports the development and commercialization of Ascendis' Endocrine Rare Disease products, including the U.S. launch of YORVIPATH, the first FDA-approved treatment for hypoparathyroidism in adults.
Key terms of the agreement include:
- Ascendis receives a $150 million upfront payment
- Royalty Pharma gets a 3% royalty on U.S. net sales of YORVIPATH
- Royalty payments cease upon reaching a 2.0x multiple, or 1.65x if achieved by December 31, 2029
This transaction highlights YORVIPATH's value and Ascendis' strategy to reduce capital costs while maintaining flexibility in their global commercial capabilities.
Ascendis Pharma e Royalty Pharma hanno stipulato un accordo di finanziamento con royalty sintetiche capitate di 150 milioni di dollari basato sulle vendite nette di YORVIPATH negli Stati Uniti. Questo accordo supporta lo sviluppo e la commercializzazione dei prodotti per malattie rare endocrine di Ascendis, incluso il lancio di YORVIPATH negli USA, il primo trattamento approvato dalla FDA per l'ipo-paratiroidismo negli adulti.
I termini chiave dell'accordo includono:
- Ascendis riceve un pagamento anticipato di 150 milioni di dollari
- Royalty Pharma ottiene una royalty del 3% sulle vendite nette di YORVIPATH negli Stati Uniti
- I pagamenti delle royalty cessano al raggiungimento di un multiplo di 2.0x, o 1.65x se raggiunto entro il 31 dicembre 2029
Questa transazione sottolinea il valore di YORVIPATH e la strategia di Ascendis di ridurre i costi di capitale mantenendo flessibilità nelle loro capacità commerciali globali.
Ascendis Pharma y Royalty Pharma han firmado un acuerdo de financiación de regalías sintéticas por un total de 150 millones de dólares basado en las ventas netas de YORVIPATH en EE. UU. Este acuerdo apoya el desarrollo y la comercialización de los productos de Ascendis para enfermedades raras endocrinas, incluida la lanzamiento de YORVIPATH en EE.UU., el primer tratamiento aprobado por la FDA para el hipoparatiroidismo en adultos.
Los términos clave del acuerdo incluyen:
- Ascendis recibe un pago por adelantado de 150 millones de dólares
- Royalty Pharma obtiene una regalía del 3% sobre las ventas netas de YORVIPATH en EE. UU.
- Los pagos de regalías cesan al alcanzar un múltiplo de 2.0x, o 1.65x si se logra antes del 31 de diciembre de 2029
Esta transacción resalta el valor de YORVIPATH y la estrategia de Ascendis para reducir los costos de capital mientras mantiene flexibilidad en sus capacidades comerciales globales.
Ascendis Pharma와 Royalty Pharma은 YORVIPATH의 미국 순매출을 기반으로 하는 1억 5천만 달러 한정의 합성 로열티 금융 계약을 체결했습니다. 이 계약은 Ascendis의 내분비 희귀질환 제품 개발 및 상용화를 지원하며, YORVIPATH의 미국 출시는 성인을 위한 첫 FDA 승인 치료제입니다.
계약의 주요 조건은 다음과 같습니다:
- Ascendis는 1억 5천만 달러의 선금을 수령합니다
- Royalty Pharma는 YORVIPATH의 미국 순매출에 대해 3%의 로열티를 받습니다
- 로열티 지급은 2.0배 배수에 도달하거나 2029년 12월 31일 이전에 달성될 경우 1.65배에 도달할 때 중지됩니다
이 거래는 YORVIPATH의 가치를 강조하며, Ascendis가 자본 비용을 줄이면서 글로벌 상업적 능력에서 유연성을 유지하려는 전략을 보여줍니다.
Ascendis Pharma et Royalty Pharma ont conclu un accord de financement par royalties synthétiques plafonné à 150 millions de dollars basé sur les ventes nettes de YORVIPATH aux États-Unis. Cet accord soutient le développement et la commercialisation des produits d'Ascendis pour les maladies rares endocrines, y compris le lancement de YORVIPATH aux États-Unis, le premier traitement approuvé par la FDA pour l’hypoparathyroïdie chez les adultes.
Les principaux termes de l'accord incluent :
- Ascendis reçoit un paiement initial de 150 millions de dollars
- Royalty Pharma obtient une redevance de 3% sur les ventes nettes de YORVIPATH aux États-Unis
- Les paiements de redevances cessent après avoir atteint un multiple de 2,0x, ou 1,65x s'ils sont atteints d'ici le 31 décembre 2029
Cette transaction met en lumière la valeur de YORVIPATH et la stratégie d'Ascendis pour réduire les coûts en capital tout en conservant la flexibilité de leurs capacités commerciales mondiales.
Ascendis Pharma und Royalty Pharma haben eine finanzielle Vereinbarung über synthetische Lizenzgebühren in Höhe von 150 Millionen Dollar getroffen, die auf den Nettoumsätzen von YORVIPATH in den USA basiert. Dieses Abkommen unterstützt die Entwicklung und Vermarktung von Ascendis‘ Produkten für seltene endokrine Erkrankungen, einschließlich der Markteinführung von YORVIPATH in den USA, der ersten von der FDA zugelassenen Behandlung für Hypoparathyreoidismus bei Erwachsenen.
Die wichtigsten Bedingungen des Abkommens beinhalten:
- Ascendis erhält eine Vorauszahlung von 150 Millionen Dollar
- Royalty Pharma erhält eine Lizenzgebühr von 3% auf die Nettoumsätze von YORVIPATH in den USA
- Die Lizenzzahlungen enden bei Erreichen eines Multiplikators von 2,0, oder 1,65, wenn dies bis zum 31. Dezember 2029 erreicht wird
Diese Transaktion hebt den Wert von YORVIPATH hervor und zeigt Ascendis‚ Strategie, die Kapitalkosten zu senken und gleichzeitig die Flexibilität ihrer globalen Vertriebsmöglichkeiten zu erhalten.
- Secured $150 million in upfront funding to support YORVIPATH launch and other corporate purposes
- YORVIPATH is the first and only FDA-approved treatment for hypoparathyroidism in adults
- Agreement structure allows Ascendis to reduce cost of capital while maintaining commercial flexibility
- Royalty payments are capped, limiting long-term financial impact on Ascendis
- 3% royalty on U.S. net sales of YORVIPATH to be paid to Royalty Pharma
- Potential long-term revenue sharing if sales targets are not met quickly
Insights
This $150 million royalty funding agreement is a strategic move for Ascendis Pharma, providing immediate capital to support the U.S. launch of YORVIPATH. The 3% royalty on U.S. net sales with a 2.0x cap (or 1.65x if reached by 2029) offers a balanced risk-reward structure. For Ascendis, this deal reduces the cost of capital while maintaining operational flexibility, important for a successful product launch. The agreement's structure suggests confidence in YORVIPATH's market potential, as reaching the cap quickly would be beneficial for both parties. However, investors should monitor the product's performance closely, as slower-than-expected sales could extend the royalty payment period, impacting long-term profitability.
YORVIPATH's approval as the first and only FDA-approved treatment for adult hypoparathyroidism is a significant milestone. This rare endocrine disorder, affecting calcium metabolism, has had treatment options. YORVIPATH addresses the underlying cause, potentially improving patient outcomes and quality of life. The funding agreement indicates strong confidence in the drug's clinical value and market potential. However, as with any new treatment for a rare disease, initial uptake may be gradual. Key factors to watch include physician adoption rates, patient accessibility and long-term efficacy data. The success of YORVIPATH could pave the way for Ascendis to expand its rare disease portfolio, potentially positioning the company as a leader in this specialized market.
This deal highlights the growing trend of innovative financing in the biotech sector, particularly for rare disease treatments. Royalty Pharma's willingness to engage in a second transaction with Ascendis underscores the perceived value of YORVIPATH and Ascendis' pipeline. The capped royalty structure aligns interests, incentivizing rapid market penetration. For investors, this agreement reduces Ascendis' near-term cash burn without diluting equity, a important consideration in the current market environment. The rare disease market, while smaller, often commands premium pricing and patient loyalty. YORVIPATH's first-mover advantage in adult hypoparathyroidism treatment could translate to substantial market share. However, investors should be aware of potential challenges such as reimbursement hurdles and the need for patient and physician education in this niche market.
Proceeds to support continued development and commercialization of Endocrine Rare Disease products, including the YORVIPATH® U.S. commercial launch, and general corporate purposes
COPENHAGEN, Denmark and NEW YORK, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Ascendis Pharma A/S (Nasdaq: ASND) and Royalty Pharma plc (Nasdaq: RPRX) today announced that Ascendis Pharma Bone Diseases A/S, a wholly-owned subsidiary of Ascendis Pharma A/S, has entered into a
“We are pleased to again partner with Royalty Pharma, a leading funder of innovation across the biopharma industry, as we launch YORVIPATH in the U.S. as the first and only FDA approved treatment of hypoparathyroidism in adults,” said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. “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.”
“We are delighted to expand our partnership with Ascendis and provide funding to support the launch of YORVIPATH, an important advancement in treating the underlying cause of hypoparathyroidism in adults,” said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. “This is now our second transaction with Ascendis, highlighting our partner centric approach and ability to structure creative, win-win funding solutions, which is a unique aspect of our business model.”
Under the terms of the agreement, Ascendis receives an upfront payment of
Evercore acted as financial advisor and Latham & Watkins and Mazanti-Andersen acted as legal advisors to Ascendis on the transaction. Goodwin Procter and Fenwick & West acted as legal advisors to Royalty Pharma.
About Ascendis Pharma A/S
Ascendis Pharma is applying its innovative TransCon technology platform to build a leading, fully integrated biopharma company focused on making a meaningful difference in patients’ lives. Guided by its core values of Patients, Science, and Passion, Ascendis uses its TransCon technologies to create new and potentially best-in-class therapies. Ascendis is headquartered in Copenhagen, Denmark and has additional facilities in Europe and the United States. Please visit ascendispharma.com to learn more.
About Royalty Pharma plc
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta, GSK’s Trelegy, Roche’s Evrysdi, Johnson & Johnson’s Tremfya, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Novartis’ Promacta, Pfizer’s Nurtec ODT and Gilead’s Trodelvy, and 16 development-stage product candidates.
Ascendis Forward-Looking Statements
This press release contains forward-looking statements that involve substantial risks and uncertainties. All statements, other than statements of historical facts, included in this press release regarding Ascendis’ future operations, plans and objectives of management are forward-looking statements. Examples of such statements include, but are not limited to, statements relating to (i) Ascendis’ expectations regarding its use of proceeds; (ii) Ascendis’ commitment to reduce its cost of capital while maintaining flexibility to support its global commercial capabilities, (iii) Ascendis’ ability to apply its TransCon technology platform to build a leading, fully integrated biopharma company, and (iv) Ascendis’ use of its TransCon technologies to create new and potentially best-in-class therapies. Ascendis may not actually achieve the plans, carry out the intentions or meet the expectations or projections disclosed in the forward-looking statements and you should not place undue reliance on these forward-looking statements. Actual results or events could differ materially from the plans, intentions, expectations and projections disclosed in the forward-looking statements. Various important factors could cause actual results or events to differ materially from the forward-looking statements that Ascendis makes, including the following: dependence on third party manufacturers, distributors and service providers for Ascendis’ products and product candidates; unforeseen safety or efficacy results in Ascendis’ development programs or on-market products; unforeseen expenses related to commercialization of any approved Ascendis products; unforeseen expenses related to Ascendis’ development programs; unforeseen selling, general and administrative expenses, other research and development expenses and Ascendis’ business generally; delays in the development of its programs related to manufacturing, regulatory requirements, speed of patient recruitment or other unforeseen delays; Ascendis’ ability to obtain additional funding, if needed, to support its business activities; the impact of international economic, political, legal, compliance, social and business factors. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to Ascendis’ business in general, see Ascendis’ Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission (SEC) on February 7, 2024 and Ascendis’ other future reports filed with, or submitted to, the SEC. Forward-looking statements do not reflect the potential impact of any future licensing, collaborations, acquisitions, mergers, dispositions, joint ventures, or investments that Ascendis may enter into or make. Ascendis does not assume any obligation to update any forward-looking statements, except as required by law.
Royalty Pharma Forward-Looking Statements
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This document contains statements that constitute “forward-looking statements” as that term is defined in the United States Private Securities Litigation Reform Act of 1995, including statements that express the company’s opinions, expectations, beliefs, plans, objectives, assumptions or projections regarding future events or future results, in contrast with statements that reflect historical facts. Examples include discussion of Royalty Pharma’s strategies, financing plans, growth opportunities and market growth. In some cases, you can identify such forward-looking statements by terminology such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or similar expressions. Forward-looking statements are based on management’s current beliefs and assumptions and on information currently available to the company. However, these forward-looking statements are not a guarantee of Royalty Pharma’s performance, and you should not place undue reliance on such statements. Forward-looking statements are subject to many risks, uncertainties and other variable circumstances, and other factors. Such risks and uncertainties may cause the statements to be inaccurate and readers are cautioned not to place undue reliance on such statements. Many of these risks are outside of the company’s control and could cause its actual results to differ materially from those it thought would occur. The forward-looking statements included in this document are made only as of the date hereof. The company does not undertake, and specifically declines, any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments, except as required by law.
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For further information, please reference Royalty Pharma’s reports and documents filed with the U.S. Securities and Exchange Commission ("SEC") by visiting EDGAR on the SEC's website at www.sec.gov.
Ascendis, Ascendis Pharma, the Ascendis Pharma logo, the company logo, TransCon, and YORVIPATH® are trademarks owned by the Ascendis Pharma group. © September 2024 Ascendis Pharma A/S.
| Investor Contacts: | Media Contact: |
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| Ascendis Pharma | Ascendis Pharma |
| +1 (650) 374-6343 | +1 (650) 709-8875 |
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| Royalty Pharma Investor Contacts: +1 (212) 883-6772 ir@royaltypharma.com | |
FAQ
What is the value of the royalty funding agreement between Ascendis Pharma and Royalty Pharma?
What is YORVIPATH and what is it used to treat?
What percentage royalty will Royalty Pharma receive on YORVIPATH U.S. net sales?
When will the royalty payments to Royalty Pharma cease?
How will Ascendis Pharma (ASND) use the funds from this agreement?
