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Royalty Pharma acquires interest in PureTech’s royalty in Karuna’s KarXT
The Fly

Royalty Pharma acquires interest in PureTech’s royalty in Karuna’s KarXT

Royalty Pharma (RPRX) and PureTech Health (PRTC) announced that Royalty Pharma has acquired an interest in PureTech’s royalty in Karuna Therapeutics’ (KRTX) KarXT for up to $500M with $100M in cash up front and up to $400M in additional payments contingent on the achievement of certain regulatory and commercial milestones. As part of this transaction, PureTech has sold its right to receive a 3% royalty from Karuna to Royalty Pharma on sales up to $2 billion annually, after which threshold Royalty Pharma will receive 33% and PureTech will retain 67% of the royalty payments. PureTech retains its 3.1% equity ownership in Karuna1. Additionally, under its license agreement with Karuna, PureTech retains the right to receive milestone payments upon the achievement of certain regulatory approvals and 20% of sublicense income.

Published first on TheFly

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