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Royalty, Ionis enter into royalty agreement for up to $1.1B
The Fly

Royalty, Ionis enter into royalty agreement for up to $1.1B

Royalty Pharma (RPRX) and Ionis Pharmaceuticals (IONS) announced that Royalty Pharma has acquired an interest in Ionis’ royalty in Biogen’s SPINRAZA and Novartis’ pelacarsen for up to $1.125B, including an upfront payment of $500M and up to $625M in additional pelacarsen milestone payments. "This transaction provides us with significant capital to reach our strategic objectives, the first of which is to achieve commercial readiness for our late-stage programs eplontersen, olezarsen and donidalorsen. It also enables us to further advance our deep and innovative pipeline so that we can continue to deliver a steady cadence of new genetic medicines to the market," said Brett Monia, Ph.D., Chief Executive Officer of Ionis. "Royalty Pharma’s investment underscores their confidence in SPINRAZA’s resilience as an important therapy for the treatment of SMA. It also demonstrates their belief in pelacarsen’s potential to be a first-in-class treatment for Lp(a)-driven cardiovascular disease, representing a multibillion-dollar commercial opportunity. Furthermore, because Ionis retains a majority interest in SPINRAZA and pelacarsen royalties, we maintain our ability to benefit significantly from the potential commercial upside of both products." Under the terms of the monetization transaction, Royalty Pharma will receive: 25% of Ionis’ SPINRAZA royalty payments through 2027, increasing to 45% of royalty payments in 2028, on up to $1.5 billion in annual sales. Royalty Pharma’s royalty interest in SPINRAZA will revert to Ionis after total SPINRAZA royalty payments reach either $475 million or $550 million, depending on the timing and occurrence of certain events; and 25% of Ionis’ pelacarsen royalty payments. Under the terms of Ionis’ exclusive licensing agreement with Biogen, Ionis is entitled to tiered royalties up to the mid-teens on annual worldwide net sales of SPINRAZA. Ionis’ exclusive license agreement with Novartis entitles Ionis to receive tiered royalties in the mid-teens to low 20% range on net sales of pelacarsen. Ionis also retains all rights to $650 million in pelacarsen development, regulatory and commercial milestones from Novartis.

Published first on TheFly

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