MacroGenics, Aventis mutually terminate Royalty Purchase Agreement

As previously announced, on March 8, 2023, MacroGenics (MGNX) entered into a Purchase and Sale Agreement with DRI Healthcare Acquisitions LP, a wholly owned subsidiary of DRI Healthcare Trust, for the sale to DRI of the company’s single-digit royalty interest on global net sales of TZIELD under the company’s Asset Purchase Agreement dated May 7, 2018, as amended, with Provention Bio. The company retained its other economic interests related to TZIELD, including future potential regulatory and commercial milestones. Further, as previously disclosed, on April 27, 2023, the company entered into an agreement with DRI and Aventis, a subsidiary of Sanofi S.A. (SNY), whereby the company consented to the sale of the Royalty Interest and certain related milestone payment obligations under the Royalty Purchase Agreement to Aventis. The Tripartite Agreement eliminated the company’s obligation to deliver payments to DRI related to the Royalty Interest and all of the company’s other obligations under the Royalty Purchase Agreement. The Royalty Interest will be paid directly to Aventis by Provention Bio. The company is also eligible to receive a $50M milestone payment if TZIELD achieves a certain level of net sales under the Asset Purchase Agreement. In addition the company remains eligible to receive a 50% share of the royalty on global net sales of TZIELD above a certain annual threshold. On September 19, 2023, the company and Provention Bio entered into an amendment of the Asset Purchase Agreement to incorporate the Sales Milestone Payment obligation from the Royalty Purchase Agreement, along with a guaranty of such obligation by Sanofi and to eliminate any obligation for Provention Bio to pay the Royalty Interest to the company. On September 19, 2023, the company and Aventis concurrently entered into a Mutual Termination Agreement terminating the Royalty Purchase Agreement.