Omeros receives $115M royalty payment from DRI Healthcare Acquisitions

Omeros announced the sale to DRI Healthcare Acquisitions LP, a wholly owned subsidiary of DRI Healthcare Trust, of an expanded interest in certain royalty payments based on net sales of Omidria in the United States. Omidria, a novel ophthalmic product for use in cataract and lens replacement surgery, was invented and first commercialized by Omeros. In December 2021, Omeros sold Omidria and related business assets to Rayner Surgical. Under the terms of that asset purchase agreement, Omeros is entitled to receive royalties on net sales of Omidria. On September 30, 2022, Omeros and DRI entered into a royalty purchase agreement under which Omeros received $125M in cash in exchange for a portion, subject to annual caps, of Omeros’ royalties on global net sales of Omidria payable by Rayner between September 1, 2022 and December 31, 2030. Omeros and DRI expanded their royalty purchase agreement, resulting in Omeros receiving from DRI an upfront payment of $115M and entitling DRI to receive the remainder of Omeros’ royalties on U.S. net sales of OMIDRIA payable between January 1, 2024 and December 31, 2031. Other than those purchased royalties, DRI has no recourse to Omeros’ assets. As part of the expanded agreement, the remaining balance of $174 million in annual caps payable by Omeros to DRI is extinguished. Omeros is also eligible to receive from DRI two milestone payments, each up to $27.5 million, payable in January 2026 and January 2028, respectively, based on achievement of certain OMIDRIA net sales thresholds. Even absent one or both milestone payments, the $115M upfront payment together with the extinguishment of the previously payable annual caps makes today’s DRI transaction, versus the projected cash flows from the previous DRI deal structure, net positive for Omeros into the first quarter of 2028. In addition, Omeros continues to retain all royalties payable on any net sales of Omidria outside the U.S., expanding after December 31, 2031 to Omeros receiving all royalties on global net sales of Omidria . Under the asset purchase agreement with Rayner, the term for royalty payments expires based on the last-expiring Omidria -related patent in the relevant country, which currently extends into 2035 in the United States.