PTC Therapeutics signs royalty agreement with Royalty Pharma for Evrysdi

PTC Therapeutics (PTCT) announced an agreement with Royalty Pharma (RPRX) to monetize up to $1.5B of the Evrysdi royalty stream. Royalty Pharma acquires additional royalties on Evrysdi for $1.0B upfront. The agreement includes options for PTC to sell up to all of its retained royalties on Evrysdi for up to $500M or for Royalty Pharma to acquire half of such retained royalties for up to $250M at a later date. PTC maintains all economics associated with up to $250M in remaining commercial sales milestones associated with Evrysdi global net sales. This agreement builds on the previous strategic partnership established with Royalty Pharma in 2020. As a result of the current agreement, PTC will maintain ownership of approximately 19% of the Evrysdi royalty stream pending any exercise of future options by PTC or Royalty Pharma. The proceeds from the financing will be used to retire all outstanding debt obligations with Blackstone Life Sciences and to fund planned operations. PTC has agreed to sell approximately 67% of both the outstanding 57% of the Evrysdi royalties and the outstanding royalty over the existing cap from the previous royalty financing agreement with Royalty Pharma. Additionally, until December 31, 2025, PTC will have the option to sell the remainder of the Evrysdi royalty to Royalty Pharma for $500M in five $100M tranches, less royalties received. If fewer than three of these options are exercised, Royalty Pharma has the option to purchase 50% of the remaining PTC royalty for $250M less royalties received until March 31, 2026.