Royalty Pharma Announces R&D Funding Collaboration With Biogen
Royalty Pharma (RPRX) has entered into an R&D funding agreement with Biogen, committing up to $250 million to support the development of litifilimab, a first-in-class investigational drug for lupus treatment. The funding will be provided over six quarters in exchange for regulatory milestones and mid-single digit royalties on worldwide sales.
Litifilimab is currently in Phase 3 trials for both systemic lupus erythematosus (SLE) and cutaneous lupus erythematosus (CLE), with results expected between 2026 and 2027. The drug has shown proof of concept and a generally well-tolerated safety profile in both conditions, with results published in the New England Journal of Medicine. SLE affects over 3 million patients worldwide, and litifilimab could potentially become the first targeted biologic specifically approved for CLE treatment.
Royalty Pharma (RPRX) ha stipulato un accordo di finanziamento per la ricerca e sviluppo con Biogen, impegnandosi a fornire fino a 250 milioni di dollari per supportare lo sviluppo di litifilimab, un farmaco investigativo di prima classe per il trattamento del lupus. Il finanziamento sarà erogato in sei trimestri in cambio di traguardi normativi e royalties a una cifra media bassa sulle vendite mondiali.
Litifilimab è attualmente in fase 3 per il lupus eritematoso sistemico (LES) e il lupus eritematoso cutaneo (LEC), con risultati attesi tra il 2026 e il 2027. Il farmaco ha dimostrato un concetto di prova e un profilo di sicurezza generalmente ben tollerato in entrambe le condizioni, con risultati pubblicati nel New England Journal of Medicine. Il LES colpisce oltre 3 milioni di pazienti in tutto il mondo, e litifilimab potrebbe potenzialmente diventare il primo biologico mirato specificamente approvato per il trattamento del LEC.
Royalty Pharma (RPRX) ha firmado un acuerdo de financiamiento para I+D con Biogen, comprometiendo hasta 250 millones de dólares para apoyar el desarrollo de litifilimab, un medicamento investigacional de primera clase para el tratamiento del lupus. La financiación se proporcionará durante seis trimestres a cambio de hitos regulatorios y regalías de un solo dígito medio sobre las ventas globales.
Litifilimab se encuentra actualmente en ensayos de fase 3 tanto para el lupus eritematoso sistémico (LES) como para el lupus eritematoso cutáneo (LEC), con resultados previstos entre 2026 y 2027. El medicamento ha mostrado prueba de concepto y un perfil de seguridad generalmente bien tolerado en ambas condiciones, con resultados publicados en el New England Journal of Medicine. El LES afecta a más de 3 millones de pacientes en todo el mundo, y litifilimab podría convertirse potencialmente en el primer biológico dirigido específicamente aprobado para el tratamiento del LEC.
로열티 파마(RPRX)가 바이오젠과 연구개발 자금 지원 계약을 체결하고, 루푸스 치료를 위한 1종의 실험 약물인 리티필리맙 개발을 지원하기 위해 최대 2억 5천만 달러를 약속했습니다. 자금은 규제 마일스톤과 전 세계 판매에 대한 중간 단일 숫자 로열티와 교환하여 6개 분기 동안 제공됩니다.
리티필리맙은 현재 전신성 홍반성 루푸스(SLE)와 피부성 루푸스(LEC)에 대해 3상 시험 중이며, 결과는 2026년과 2027년 사이에 예상됩니다. 이 약물은 두 가지 상태 모두에서 개념 증명과 일반적으로 잘 견디는 안전성 프로필을 보여주었으며, 결과는 New England Journal of Medicine에 발표되었습니다. SLE는 전 세계적으로 300만 명 이상의 환자에게 영향을 미치며, 리티필리맙은 LEC 치료를 위해 특별히 승인된 최초의 표적 생물학적 제제가 될 수 있습니다.
Royalty Pharma (RPRX) a conclu un accord de financement pour la recherche et le développement avec Biogen, s'engageant à fournir jusqu'à 250 millions de dollars pour soutenir le développement de litifilimab, un médicament expérimental de première classe pour le traitement du lupus. Le financement sera fourni sur six trimestres en échange de jalons réglementaires et de redevances à un chiffre moyen sur les ventes mondiales.
Litifilimab est actuellement en essais de phase 3 pour le lupus érythémateux systémique (LES) et le lupus érythémateux cutané (LEC), avec des résultats attendus entre 2026 et 2027. Le médicament a montré une preuve de concept et un profil de sécurité généralement bien toléré dans les deux conditions, avec des résultats publiés dans le New England Journal of Medicine. Le LES touche plus de 3 millions de patients dans le monde, et litifilimab pourrait potentiellement devenir le premier biologique ciblé spécifiquement approuvé pour le traitement du LEC.
Royalty Pharma (RPRX) hat eine Forschungs- und Entwicklungsfinanzierungsvereinbarung mit Biogen abgeschlossen, in deren Rahmen bis zu 250 Millionen Dollar bereitgestellt werden, um die Entwicklung von Litifilimab, einem neuartigen experimentellen Medikament zur Behandlung von Lupus, zu unterstützen. Die Finanzierung wird über sechs Quartale bereitgestellt, im Austausch für regulatorische Meilensteine und mittlere einstellige Lizenzgebühren auf den weltweiten Umsatz.
Litifilimab befindet sich derzeit in Phase-3-Studien sowohl für systemischen Lupus erythematodes (SLE) als auch für kutanen Lupus erythematodes (CLE), mit Ergebnissen, die zwischen 2026 und 2027 erwartet werden. Das Medikament hat einen Nachweis des Konzepts und ein im Allgemeinen gut verträgliches Sicherheitsprofil in beiden Erkrankungen gezeigt, wobei die Ergebnisse im New England Journal of Medicine veröffentlicht wurden. SLE betrifft weltweit über 3 Millionen Patienten, und Litifilimab könnte potenziell das erste gezielte Biologikum werden, das speziell für die Behandlung von CLE zugelassen ist.
- Strategic investment in a potential first-in-class drug for lupus treatment
- Revenue potential through mid-single digit royalties on worldwide sales
- Additional income through regulatory milestone payments
- Large market opportunity with over 3 million SLE patients worldwide
- Significant upfront investment of $250 million required
- Long wait for potential returns with trial results expected 2026-2027
- Risk of clinical trial failure in Phase 3 studies
Insights
This R&D funding collaboration represents a strategically calculated move by Royalty Pharma, demonstrating the company's expertise in identifying high-potential late-stage assets. The $250 million investment is particularly noteworthy for several key reasons:
The deal structure reveals sophisticated risk management: By spreading the investment over six quarters, RPRX maintains financial flexibility while securing potential future revenue streams through mid-single digit royalties. This approach aligns with their proven model of providing tailored funding solutions for promising therapies.
The market opportunity is substantial and multi-faceted:
- The 3 million+ SLE patient population globally represents a significant commercial opportunity
- The potential first-in-disease status for CLE could provide a unique market position and pricing power
- Publication in the New England Journal of Medicine provides strong clinical validation, reducing development risk
The 2026-2027 timeline for Phase 3 results positions this as a medium-term catalyst for RPRX's portfolio. The investment demonstrates RPRX's ability to secure favorable terms in competitive deals, particularly noteworthy given Biogen's strong position in neuroscience and immunology.
From a portfolio perspective, this deal enhances RPRX's exposure to the growing autoimmune disease market while maintaining their capital-efficient business model. The structured payment approach and milestone-based returns provide a balanced risk-reward profile typical of RPRX's successful deal-making strategy.
Royalty Pharma to provide R&D investment of up to
NEW YORK, Feb. 12, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has entered into an agreement with Biogen to provide research and development (R&D) funding of up to
“We are excited to collaborate with Biogen on litifilimab,” said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. “Royalty Pharma offers tailored, win-win funding solutions for promising therapies in areas of high unmet medical need. Litifilimab has the potential to significantly improve treatment outcomes for patients living with lupus, and we are excited to support its Phase 3 development through this funding collaboration.”
“This agreement highlights Biogen’s growing lupus portfolio and the potential of litifilimab, with its distinct mechanism of action, to address SLE and CLE – two forms of lupus where there are currently insufficient treatment options,” said Priya Singhal, M.D., M.P.H., Head of Development at Biogen. “We know patients are waiting, and this investment further supports the advancement of this promising investigational treatment through critical development stages.”
Litifilimab is currently in Phase 3 trials for both SLE and CLE with results expected between 2026 and 2027. With a differentiated mechanism of action, litifilimab demonstrated proof of concept and a generally well-tolerated safety profile in SLE and CLE with results published in the New England Journal of Medicine1. Importantly, SLE is estimated to affect greater than 3 million patients worldwide. There are no targeted biologics specifically approved for CLE where litifilimab has the potential to be a first-in-disease medicine for these patients.
Transaction Terms
Royalty Pharma will provide up to
Advisors
Goodwin Procter, Dechert and Maiwald acted as legal advisors to Royalty Pharma.
About Royalty Pharma
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 15 development-stage product candidates.
Forward-Looking Statements
The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this document unless stated otherwise, and neither the delivery of this document at any time, nor any sale of securities, shall under any circumstances create an implication that the information contained herein is correct as of any time after such date or that information will be updated or revised to reflect information that subsequently becomes available or changes occurring after the date hereof. 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, market growth, and plans for capital deployment. In some cases, you can identify such forward-looking statements by terminology such as “may,” “might,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “target,” “forecast,” “guidance,” “goal,” “predicts,” “project,” “potential” or “continue,” 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 Royalty Pharma’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. Royalty Pharma 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. 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.
Royalty Pharma Investor Relations and Communications
+1 (212) 883-6637
ir@royaltypharma.com
_______________________
1 Trial of Anti-BDCA2 Antibody Litifilimab for Systemic Lupus Erythematosus, New England Journal of Medicine, 9/7/2022; Trial of Anti-BDCA2 Antibody Litifilimab for Cutaneous Lupus Erythematosus, New England Journal of Medicine, 7/27/2022
FAQ
What is the value of Royalty Pharma's (RPRX) R&D funding agreement with Biogen?
What royalties will RPRX receive from the Biogen collaboration?
When are the Phase 3 trial results for litifilimab expected?
What is the market potential for litifilimab that RPRX is investing in?
How will RPRX fund the Biogen collaboration?
