Royalty Pharma Places $500 Million Bet on Ferring Gene Therapy

Royalty Pharma, a company specializing in acquiring pharmaceutical royalties, and Ferring Pharmaceuticals, a biopharmaceutical company with a new gene therapy expected to hit the market, announced that Royalty Pharma had acquired a synthetic royalty on US net sales of Ferring’s adstiladrin (nadofaragene firadenovec-vncg) gene therapy treatment on Aug. 24, 2023. Royalty Pharma will pay $300 million upfront for a 5.1% royalty on net sales of the treatment in the United States. An additional $200 million milestone payment is contingent on certain manufacturing goals that are expected to be achieved in 2025, according to a company press release; once this payment is made, the royalty will increase to 8.0%.

Nadofaragene is an FDA-approved intravesical gene therapy intended for the treatment of adult patients with high-risk Bacillus Calmette-Guerin-unresponsive non-muscle invasive bladder cancer with carcinoma in situ with or without papillary tumors. According to the release, it will be made available in the United States through an early experience program in September 2023.

According to the release, nadofaragene is a non-replicating adenovirus vector-based gene therapy containing the gene encoding interferon alfa-2b protein, administered by catheter into the bladder once every three months. The vector enters the cells of the bladder wall, releasing the interferon gene, and is designed to effectively turn the patient’s own bladder wall cells into interferon microfactories, enhancing the body’s natural defenses against the cancer.

“This major investment by Royalty Pharma, the largest buyer of biopharmaceutical royalties and a leading funder of innovation, is yet another demonstration of the value and confidence in our gene therapy Adstiladrin to address significant unmet medical needs for patients. It also highlights its significant potential as a key growth driver for Ferring, and our commitment to Uro-Oncology,” said Jean-Frédéric Paulsen, executive chairman, Ferring Pharmaceuticals, in the release.

“We are delighted to partner with Ferring, a research-driven, global specialty biopharmaceutical company. This investment is consistent with our strategy of acquiring royalties on innovative therapies in areas of high unmet patient need,” said Pablo Legorreta, founder and CEO, Royalty Pharma, in the release. “Adstiladrin is the first gene therapy in our diversified royalty portfolio. We believe it has blockbuster potential and we are pleased to provide funding to support the launch of Adstiladrin and help Ferring reach as many patients as possible with this important therapy in the United States.”

Source: Royalty Pharma