Royalty Pharma to Purchase up to $1.5 Billion of PTC Therapeutics’ Royalty on Roche’s Evrysdi
The spinal muscular atrophy treatment, currently marketed by Roche, generated $1.2 billion in sales in 2022.
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Royalty Pharma announced on Oct. 19, 2023 that it has signed an agreement with PTC Therapeutics to acquire additional royalties on Roche’s Evrysdi. Royalty will pay $1.5 billion upfront, with the possibility of purchasing the remaining royalties for up to $500 million at a later date. Evrysdi, which is marketed by Roche, is an “orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy [SMA].” It received FDA approval in 2020 and has since treated more than 11,000 patients internationally. In 2022, Evrysdi generated approximately $1.2 billion in sales, 87% higher than in 2021.
As of the publication of this article, Roche’s royalty payment on Evrysdi is tiered, ranging from 8% to 16%. Following this transaction, Royalty Pharma’s ownership of the Evrysdi royalty is increasing from 43% to 81%. Until Dec. 31, 2025, PTC will have the option to sell its remaining Evrysdi royalties to Royalty Pharma for $500 million in five equal tranches. If PTC uses less than three of these options, Royalty Pharma will have the opportunity until March 31, 2026 to purchase 50% of the remaining royalties for $250 million.
“We are excited to acquire an additional royalty interest in Evrysdi, a convenient, oral therapy that has transformed the lives of SMA patients worldwide,” said Pablo Legorreta, founder and chief executive officer of Royalty Pharma in a Royalty Pharma press release. “This is our second transaction with PTC, which builds on our longstanding partnership, and highlights our ability to structure creative, win-win funding solutions for our partners. Further, our unmatched scale and deep knowledge of SMA positioned us to provide PTC with substantial capital in a timely fashion, another unique aspect of our business model. This transaction is expected to further enhance Royalty Pharma’s long-term growth and diversification. We remain incredibly excited for our future given our robust transaction pipeline.”
Source: Royalty Pharma
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