Ascendis Pharma and Royalty Pharma Enter into $150 Million Royalty Funding Agreement

On September 3, 2024 Ascendis Pharma A/S (Nasdaq: ASND) and Royalty Pharma plc (Nasdaq: RPRX) reported that Ascendis Pharma Bone Diseases A/S, a wholly-owned subsidiary of Ascendis Pharma A/S, has entered into a $150 million capped synthetic royalty funding agreement with Royalty Pharma based on U.S. net sales of YORVIPATH (Press release, Ascendis Pharma, SEP 3, 2024, View Source [SID1234646285]).

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"We are pleased to again partner with Royalty Pharma, a leading funder of innovation across the biopharma industry, as we launch YORVIPATH in the U.S. as the first and only FDA approved treatment of hypoparathyroidism in adults," said Jan Mikkelsen, Ascendis Pharma’s President and Chief Executive Officer. "This transaction reflects the significant value of YORVIPATH and our commitment to reduce our cost of capital while maintaining flexibility to support our global commercial capabilities."

"We are delighted to expand our partnership with Ascendis and provide funding to support the launch of YORVIPATH, an important advancement in treating the underlying cause of hypoparathyroidism in adults," said Pablo Legorreta, founder and Chief Executive Officer of Royalty Pharma. "This is now our second transaction with Ascendis, highlighting our partner centric approach and ability to structure creative, win-win funding solutions, which is a unique aspect of our business model."

Under the terms of the agreement, Ascendis receives an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of YORVIPATH. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 2.0x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.

Evercore acted as financial advisor and Latham & Watkins and Mazanti-Andersen acted as legal advisors to Ascendis on the transaction. Goodwin Procter and Fenwick & West acted as legal advisors to Royalty Pharma.