Royalty Pharma plc (Nasdaq: RPRX), the largest buyer of
biopharmaceutical royalties and a leading funder of innovation
across the life sciences industry, and PureTech Health plc (Nasdaq:
PRTC, LSE: PRTC), a clinical-stage biotherapeutics company
dedicated to changing the treatment paradigm for devastating
diseases, today announced that Royalty Pharma has acquired an
interest in PureTech’s royalty in Karuna Therapeutics’ KarXT for up
to $500 million with $100 million in cash up front and up to $400
million in additional payments contingent on the achievement of
certain regulatory and commercial milestones.
“We are delighted to partner with PureTech, which began a
remarkable innovation story with KarXT that has demonstrated an
impressive clinical profile in Phase 3,” said Pablo Legorreta,
Royalty Pharma’s founder and Chief Executive Officer. “We believe
this important therapy will have a significant impact on patients
with schizophrenia if approved by the FDA. This medicine is a
notable addition to our royalty portfolio and is well aligned with
our strategy of investing in breakthrough therapies that address
areas of high unmet medical need.”
“We’ve seen extraordinary clinical success demonstrated by
KarXT, which, if approved, will be the first new mechanism for
treating schizophrenia in more than fifty years. KarXT has now
demonstrated efficacy in registration enabling studies and is
heralded as a potential treatment paradigm shift that could impact
millions of patients,” said Daphne Zohar, founder and Chief
Executive Officer of PureTech. “This agreement will provide
PureTech with additional non-dilutive capital to advance our Wholly
Owned Pipeline, including our rapidly maturing clinical programs,
towards potential commercialization. Such non-dilutive sources of
capital have allowed us to fund our pipeline and operations without
having to raise capital from the public markets in over five years,
and we are pleased to be able to benefit from the success of our
invented programs.”
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.
KarXT was invented by a team at PureTech, including its Chief
Innovation Officer, Eric Elenko, Ph.D., who served as the founding
CEO of Karuna Therapeutics. KarXT is an oral, investigational
M1/M4-preferring muscarinic agonist in development for the
treatment of psychiatric and neurological conditions, including
schizophrenia as a monotherapy and adjunctive therapy and psychosis
in Alzheimer’s disease. Karuna has announced that it plans to
submit a New Drug Application for KarXT in schizophrenia to the
U.S. Food and Drug Administration (FDA) in mid-2023.
Advisors
Gibson, Dunn & Crutcher, LLP, Jones Day and Maiwald GmbH
acted as legal advisors to Royalty Pharma and Sills Cummis &
Gross P.C., acted as legal advisors to PureTech.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of
biopharmaceutical royalties and a leading funder of innovation
across the biopharmaceutical industry, collaborating with
innovators from academic institutions, research hospitals and
non-profits through small and mid-cap biotechnology companies to
leading global pharmaceutical companies. Royalty Pharma has
assembled a portfolio of royalties which entitles it to payments
based directly on the top-line sales of many of the industry’s
leading therapies. Royalty Pharma funds innovation in the
biopharmaceutical industry both directly and indirectly - directly
when it partners with companies to co-fund late-stage clinical
trials and new product launches in exchange for future royalties,
and indirectly when it acquires existing royalties from the
original innovators. Royalty Pharma’s current portfolio includes
royalties on more than 35 commercial products, including Vertex’s
Trikafta, Kalydeco, Orkambi and Symdeko, Biogen’s Tysabri, AbbVie
and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s
Xtandi, GSK’s Trelegy, Novartis’ Promacta, Pfizer’s Nurtec ODT,
Johnson & Johnson’s Tremfya, Roche’s Evrysdi, Gilead’s
Trodelvy, and 10 development-stage product candidates.
About PureTech
PureTech is a biotherapeutics company dedicated to changing
the treatment paradigm for devastating diseases. The Company has
created a broad and deep pipeline through the expertise of its
experienced research and development team and its extensive network
of scientists, clinicians and industry leaders. This pipeline,
which is being advanced both internally and
through PureTech's Founded Entities, is comprised of 26
therapeutics and therapeutic candidates, including two (Plenity®
and EndeavorRx®) that have received both U.S. FDA
clearance and European marketing authorization and a third (KarXT)
that will soon be filed for FDA approval, as of the most recent
update by the Company. All of the underlying programs and platforms
that resulted in this pipeline of therapeutic candidates were
initially identified or discovered and then advanced by
the PureTech team through key validation points based on
its unique insights and technology platforms.
For more information, visit www.puretechhealth.com or
connect with us on Twitter @puretechh.
Royalty Pharma Forward-Looking Statements
The information set forth herein does not purport to be complete
or to contain all of the information you may desire. Statements
contained herein are made as of the date of this document unless
stated otherwise, and neither the delivery of this document at any
time, nor any sale of securities, shall under any circumstances
create an implication that the information contained herein is
correct as of any time after such date or that information will be
updated or revised to reflect information that subsequently becomes
available or changes occurring after the date hereof.
This document contains statements that constitute
“forward-looking statements” as that term is defined in the United
States Private Securities Litigation Reform Act of 1995, including
statements that express the company’s opinions, expectations,
beliefs, plans, objectives, assumptions or projections regarding
future events or future results, in contrast with statements that
reflect historical facts. Examples include discussion of Royalty
Pharma’s strategies, financing plans, growth opportunities and
market growth. In some cases, you can identify such forward-looking
statements by terminology such as “anticipate,” “intend,”
“believe,” “estimate,” “plan,” “seek,” “project,” “expect,” “may,”
“will,” “would,” “could” or “should,” the negative of these terms
or similar expressions. Forward-looking statements are based on
management’s current beliefs and assumptions and on information
currently available to the company. However, these forward-looking
statements are not a guarantee of Royalty Pharma’s performance, and
you should not place undue reliance on such statements.
Forward-looking statements are subject to many risks, uncertainties
and other variable circumstances, and other factors. Such risks and
uncertainties may cause the statements to be inaccurate and readers
are cautioned not to place undue reliance on such statements. Many
of these risks are outside of the company’s control and could cause
its actual results to differ materially from those it thought would
occur. The forward-looking statements included in this document are
made only as of the date hereof. The company does not undertake,
and specifically declines, any obligation to update any such
statements or to publicly announce the results of any revisions to
any such statements to reflect future events or developments,
except as required by law.
Certain information contained in this document relates to or is
based on studies, publications, surveys and other data obtained
from third-party sources and the company's own internal estimates
and research. While the company believes these third-party sources
to be reliable as of the date of this document, it has not
independently verified, and makes no representation as to the
adequacy, fairness, accuracy or completeness of, any information
obtained from third-party sources. In addition, all of the market
data included in this document involves a number of assumptions and
limitations, and there can be no guarantee as to the accuracy or
reliability of such assumptions. Finally, while the company
believes its own internal research is reliable, such research has
not been verified by any independent source.
For further information, please reference Royalty Pharma’s
reports and documents filed with the U.S. Securities and Exchange
Commission (SEC). You may get these documents by visiting EDGAR on
the SEC website at www.sec.gov.
PureTech Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. All statements contained in this press release that do not
relate to matters of historical fact should be considered
forward-looking statements, including without limitation those
statements related to the terms of the agreement with Royalty
Pharma for the Karuna royalties, KarXT, its development, clinical
milestones and potential therapeutic applications, PureTech’s
Wholly Owned Pipeline and the development, clinical milestones and
potential therapeutic applications associated with its candidates,
and our future prospects, developments, and strategies. The
forward-looking statements are based on current expectations and
are subject to known and unknown risks, uncertainties and other
important factors that could cause actual results, performance and
achievements to differ materially from current expectations,
including, but not limited to, those risks, uncertainties and other
important factors described under the caption “Risk Factors” in our
Annual Report on Form 20-F for the year ended December 31, 2021
filed with the SEC and in our other regulatory filings. These
forward-looking statements are based on assumptions regarding the
present and future business strategies of the Company and the
environment in which it will operate in the future. Each
forward-looking statement speaks only as at the date of this press
release. Except as required by law and regulatory requirements, we
disclaim any obligation to update or revise these forward-looking
statements, whether as a result of new information, future events
or otherwise.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 which forms part of
UK domestic law by virtue of the European Union (Withdrawal) Act
2018 ('MAR'). Upon the publication of this announcement via a
Regulatory Information Service ('RIS'), this inside information is
now considered to be in the public domain.
Royalty Pharma Investor Relations and
Communications
+1 (212) 883-6772ir@royaltypharma.com
PureTech Investor Contacts
Public Relationspublicrelations@puretechhealth.com
Investor RelationsIR@puretechhealth.com
PureTech Media Contacts
EU MediaBen Atwell, Rob Winder+44 (0) 20 3727
1000ben.atwell@FTIconsulting.com
U.S. MediaNichole Sarkis+1 774 278
8273nichole@tenbridgecommunications.com
1 As of February 23, 2023
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