The Life Sciences team advised Royalty Pharma plc. in its agreement with PTC Therapeutics (NASDAQ: PTCT) to acquire additional royalties on Roche’s Evrysdi for $1.0 billion upfront. The agreement includes options for PTC to sell up to all of its retained royalties on Evrysdi for up to $500 million or for Royalty Pharma to acquire half of such retained royalties for up to $250 million at a later date.
The total royalty that Roche pays on worldwide net product sales of Evrysdi is tiered ranging from 8% to 16%. Following the transaction announced today, in total, Royalty Pharma is increasing its ownership of the Evrysdi royalty from 43% to 81%, equating to a royalty of 6.5% to 13% (not including any exercise of future options by PTC or 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.
The Goodwin team was led by Jacqueline Mercier, Bob Crawford, Kris Ring and Catherine Magazu, and included Barry Bazian, Elliot Horlick, Will Ogden and Zhe Yang and paralegal Amy Arnelle.
For additional details on the agreement, please read the press release and coverage in Reuters and Pharmaceutical Executive.