Goodwin Advises Zealand Pharma on Entering Into a $100 Million Royalty Purchase and Sale Agreement With Royalty Pharma for the Economics Related to rusfertide

The Life Sciences team advised Zealand Pharma A/S on entering into a royalty purchase and sale agreement with Royalty Pharma plc in exchange for Zealand Pharma’s economics related to rusfertide (PTG-300), a potential first-in-class therapy for polycythemia vera, a rare and chronic blood disorder.

Under the terms of the royalty purchase and sale agreement, Zealand Pharma will receive $100 million for the sale of its economic interests related to rusfertide, including rights to a one percent royalty on potential future global net sales of rusfertide and certain regulatory and commercial milestones. Of the $100 million, Zealand Pharma will receive an upfront payment of $50 million upon closing of the transaction. The remaining $50 million is due upon the first anniversary of the closing of the agreement. Zealand Pharma will retain the right to a 0.25% royalty on annual net global sales of rusfertide greater than $1.5 billion, while Royalty Pharma will retain a 0.75% royalty on sales above $1.5 billion.

Zealand Pharma is a biotechnology company focused on advancing medicines for obesity and metabolic health. Combining more than 25 years of peptide R&D expertise with a proprietary data platform that leverages advanced data driven and AI/ML approaches, Zealand Pharma aims to lead a new era in obesity and metabolic health. To date, more than ten Zealand Pharma-invented drug candidates have entered clinical development, of which two products have reached the market and three candidates are in late-stage development. The company has collaborations with global pharmaceutical and biotechnology partners for research, development, and commercialization. Founded in 1998, Zealand Pharma is headquartered in Copenhagen, Denmark, with a US presence in Boston, Massachusetts.

The Goodwin deal team was led by Bob Crawford, Wei Xu, and Alison Liou. Alex Valenti provided invaluable assistance, and Zealand Pharma is a client of Kris Brown.

For more information on the deal, please read the press release.