Royalty Pharma to Purchase up to $1.5 Billion of PTC Therapeutics’ Royalty on Roche’s Evrysdi

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