Royalty Pharma and Ascendis Pharma Enter Into $150 Million Royalty Funding Agreement
Royalty Pharma and Ascendis Pharma have entered into a $150 million capped synthetic royalty funding agreement based on U.S. net sales of Yorvipath, the first FDA-approved treatment for hypoparathyroidism in adults. Ascendis will receive an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of Yorvipath. The royalty payments will cease upon reaching a multiple of 2.0x, or 1.65x if achieved by December 31, 2029.
This agreement supports Ascendis Pharma's continued development and commercialization of Endocrine Rare Disease products, including the Yorvipath U.S. commercial launch. The transaction reflects the significant value of Yorvipath and Ascendis' commitment to reducing capital costs while maintaining flexibility to support global commercial capabilities.
Royalty Pharma e Ascendis Pharma hanno stipulato un accordo di finanziamento tramite royalty sintetica capped di 150 milioni di dollari basato sulle vendite nette statunitensi di Yorvipath, il primo trattamento approvato dalla FDA per l'ipoparatiroidismo negli adulti. Ascendis riceverà un pagamento iniziale di 150 milioni di dollari in cambio di una royalty del 3% sulle vendite nette di Yorvipath negli Stati Uniti. I pagamenti royalty cesseranno al raggiungimento di un multiplo di 2,0x, o 1,65x se ottenuto entro il 31 dicembre 2029.
Questo accordo supporta lo sviluppo e la commercializzazione continua da parte di Ascendis Pharma dei prodotti per le malattie endocrine rare, compresa il lancio commerciale di Yorvipath negli Stati Uniti. La transazione riflette il significativo valore di Yorvipath e l'impegno di Ascendis a ridurre i costi di capitale mantenendo la flessibilità per supportare le capacità commerciali globali.
Royalty Pharma y Ascendis Pharma han firmado un acuerdo de financiación de regalías sintéticas limitado de 150 millones de dólares basado en las ventas netas en EE. UU. de Yorvipath, el primer tratamiento aprobado por la FDA para la hipoparatiroidismo en adultos. Ascendis recibirá un pago inicial de 150 millones de dólares a cambio de una regalía del 3% sobre las ventas netas de Yorvipath en EE. UU. Los pagos de regalías cesarán al alcanzar un múltiplo de 2.0x, o 1.65x si se logra antes del 31 de diciembre de 2029.
Este acuerdo apoya el desarrollo y la comercialización continua de productos de enfermedades raras endocrinas por parte de Ascendis Pharma, incluyendo el lanzamiento comercial de Yorvipath en EE. UU. La transacción refleja el notable valor de Yorvipath y el compromiso de Ascendis de reducir los costos de capital mientras mantiene la flexibilidad para apoyar las capacidades comerciales globales.
로얄티 제약(Royalty Pharma)와 아센디스 제약(Ascendis Pharma)는 1억 5천만 달러 한도의 합성 로열티 자금 지원 계약을 체결하였습니다. 이 계약은 성인 hypoparathyroidism(부갑상선기능저하증) 치료제로서 FDA 승인을 받은 첫 제품인 Yorvipath의 미국 순 판매를 기준으로 하고 있습니다. Ascendis는 Yorvipath의 미국 순 판매에 대해 3%의 로열티를 받는 대가로 1억 5천만 달러의 선불금을 받게 됩니다. 로열티 지급은 2.0배 또는 2029년 12월 31일까지 달성될 경우 1.65배에 도달하면 중단됩니다.
이번 계약은 Ascendis 제약의 내분비 희귀 질환 제품의 지속적인 개발 및 상업화를 지원하며, Yorvipath의 미국 상업 출시에 포함됩니다. 이 거래는 Yorvipath의 중요한 가치를 반영하며, Ascendis가 자본 비용을 줄이면서도 글로벌 상업적 역량을 지원하기 위한 유연성을 유지하겠다는 의지를 보여줍니다.
Royalty Pharma et Ascendis Pharma ont conclu un accord de financement par redevances synthétiques plafonné à 150 millions de dollars basé sur les ventes nettes américaines de Yorvipath, le premier traitement approuvé par la FDA pour l'hypoparathyroïdie chez les adultes. Ascendis recevra un paiement initial de 150 millions de dollars en échange d'une redevance de 3% sur les ventes nettes de Yorvipath aux États-Unis. Les paiements de redevances cesseront dès qu'un multiple de 2,0x ou 1,65x si atteint avant le 31 décembre 2029 sera atteint.
Cet accord soutient le développement et la commercialisation continus des produits pour les maladies endocrines rares d'Ascendis Pharma, y compris le lancement commercial de Yorvipath aux États-Unis. La transaction reflète la valeur significative de Yorvipath et l'engagement d'Ascendis à réduire les coûts de capital tout en maintenant la flexibilité nécessaire pour soutenir les capacités commerciales à l'échelle mondiale.
Royalty Pharma und Ascendis Pharma haben eine 150 Millionen Dollar begrenzte synthetische Lizenzfinanzierungsvereinbarung auf Basis von Netto-Umsätzen in den USA für Yorvipath abgeschlossen, das erste von der FDA zugelassene Medikament zur Behandlung von Hypoparathyreoidismus bei Erwachsenen. Ascendis erhält eine Vorauszahlung von 150 Millionen Dollar im Austausch für eine 3%-Lizenzgebühr auf die Nettoverkäufe von Yorvipath in den USA. Die Lizenzzahlungen enden, sobald ein Vielfaches von 2,0x oder 1,65x, wenn bis zum 31. Dezember 2029 erreicht, erreicht ist.
Diese Vereinbarung unterstützt die fortlaufende Entwicklung und Vermarktung von Produkten für seltene endokrine Erkrankungen durch Ascendis Pharma, einschließlich des kommerziellen Starts von Yorvipath in den USA. Die Transaktion spiegelt den erheblichen Wert von Yorvipath wider und zeigt das Engagement von Ascendis, die Kapitalkosten zu senken, während gleichzeitig die Flexibilität zur Unterstützung globaler Vertriebskapazitäten gewahrt bleibt.
- Ascendis Pharma receives $150 million upfront payment to support Yorvipath commercialization
- Royalty payments capped at 2.0x or 1.65x, limiting long-term financial impact on Ascendis
- Agreement provides funding for Yorvipath launch without diluting shareholders
- Ascendis Pharma to pay 3% royalty on U.S. net sales of Yorvipath
- Potential long-term revenue impact if Yorvipath sales are successful
Insights
This $150 million royalty funding agreement between Royalty Pharma and Ascendis Pharma is a significant financial move. It provides Ascendis with immediate capital for the U.S. launch of Yorvipath, their hypoparathyroidism treatment. The 3% royalty on U.S. net sales with a 2.0x cap (or 1.65x by 2029) is a balanced structure, allowing Royalty Pharma potential upside while limiting Ascendis' long-term obligations. This deal showcases Ascendis' strategy to reduce capital costs while maintaining flexibility, which is important for a biotech company commercializing a new drug. The repeated partnership with Royalty Pharma also signals investor confidence in Yorvipath's market potential.
Yorvipath's approval as the first and only FDA-approved treatment for adult hypoparathyroidism is a significant medical breakthrough. Hypoparathyroidism, a rare endocrine disorder, has long lacked targeted therapies. This launch could dramatically improve patient outcomes by addressing the underlying cause rather than just managing symptoms. The funding agreement will likely accelerate Yorvipath's market penetration, potentially benefiting thousands of patients. However, as with any new treatment, post-market surveillance will be important to confirm long-term safety and efficacy. The success of Yorvipath could also spur further research and development in the underserved field of rare endocrine diseases.
The royalty funding agreement for Yorvipath indicates strong market potential for this novel hypoparathyroidism treatment. As the first FDA-approved therapy in this space, Yorvipath has a first-mover advantage in a niche but potentially lucrative market. The rare disease sector often commands premium pricing, which could translate to significant revenues if Yorvipath gains widespread adoption. However, market penetration may face challenges such as identifying patients, securing reimbursement and educating healthcare providers. The involvement of Royalty Pharma, known for backing successful drugs, lends credibility to Yorvipath's commercial prospects. This deal structure also allows Ascendis to retain more upside if the drug exceeds expectations, which is a positive sign for investors.
Proceeds to support continued development and commercialization of Endocrine Rare Disease products, including the Yorvipath U.S. commercial launch, and general corporate purposes
NEW YORK and COPENHAGEN, Denmark, Sept. 03, 2024 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) and Ascendis Pharma A/S (Nasdaq: ASND) today announced that Royalty Pharma and 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
Advisors
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 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.
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.
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Ascendis Forward-Looking Statements
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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.
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FAQ
What is the value of the royalty funding agreement between Royalty Pharma and Ascendis Pharma for Yorvipath (RPRX)?
What percentage royalty will Ascendis Pharma pay to Royalty Pharma for Yorvipath sales (RPRX)?
When will the royalty payments to Royalty Pharma for Yorvipath cease (RPRX)?
What is Yorvipath, and what condition does it treat (RPRX)?
