|These: Royal Pharmaceuticals
- Royalty Pharma acquires PureTech rights to KarXT from Karuna Therapeutics. Royalty Pharma and PureTech share royalties above a certain annual revenue threshold
- PureTech will retain its current equity interest in Karuna, as well as milestone payments and 20% of PureTech's sublicense revenue
- The transaction provides PureTech with additional non-dilutive capital for its growing and rapidly growing wholly-owned pipeline of five clinical-stage drug candidates expected by the end of 2023
NEW YORK and BOSTON, March 23, 2023 (GLOBE NEWSWIRE) -- Royalty Pharma plc (NASDAQ: RPRX ) is the largest acquirer of biopharmaceutical property rights and a leading financier of innovation in the life sciences industry, and PureTech Health plc (NASDAQ: PRTCPR , LSE ), a clinical-stage biotherapeutics company working to transform the treatment paradigm for devastating diseases, announced today that Royalty Pharma has paid up to $500 million of PureTech's rights to Karuna Therapeutics' KarXT and $100 million in cash upfront and up to $400 million in additional payments upon achievement of certain regulatory and commercial milestones;
Pablo Legorreta, Founder and CEO of Royalty Pharma, said: "We are pleased to partner with PureTech, who together with KarXT have embarked on a remarkable innovation story and demonstrated an impressive clinical profile in Phase 3." We believe that this important treatment, if approved by the FDA, will have a significant impact on patients with schizophrenia. This drug is an important addition to our patented portfolio and aligns well with our investment in breakthrough therapies to address significant unmet medical needs. The strategy in this area is absolutely consistent."
“We have seen extraordinary clinical success with KarXT, which if approved will be the first new mechanism of action to treat schizophrenia in more than fifty years. KarXT has now demonstrated efficacy in registry-supporting studies and has been approved by Hailed as a potential paradigm shift in treatment that could impact millions of patients,” said Daphne Zohar, Founder and CEO of PureTech. “This agreement will provide PureTech with additional non-dilutive capital to advance our wholly owned pipeline, including our rapidly maturing clinical programs, for potential commercialization. This non-dilutive source of funding allows us to fund our pipeline and operations for more than a year."
As part of the transaction, PureTech sold its right to receive a 3% royalty from Karuna on annual sales of up to $2 billion to Royalty Pharma. Royalty Pharma will then receive 33% and PureTech will retain 67% of the royalties. PureTech retains a 3.1% stake in Karuna1In addition, as part of the license agreement with Karuna, PureTech retains the right to receive milestone payments upon receipt of certain regulatory approvals and 20% of sublicense revenues.
KarXT was invented by a PureTech team that includes Chief Innovation Officer Dr. Eric Elenko, who was previously the founding CEO of Karuna Therapeutics; KarXT is an investigational oral M1/M4 preferred muscarinic agonist for the treatment of psychiatric and neurological disorders, including schizophrenia and Alzheimer's disease, as monotherapy, adjunctive therapy and psychosis. Karuna announced plans to submit a new drug application for KarXT for the treatment of schizophrenia to the US Food and Drug Administration (FDA) in mid-2023.
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 counsel to PureTech.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalty payments and a leading funder of innovation across the biopharmaceutical industry. The company works with innovators from academic institutions, research hospitals and technology companies to the world's leading pharmaceutical companies. Royalty Pharma has bundled a series of royalties that entitle the company to receive payments directly based on top sales of several industry-leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly—directly when the company partners with companies to fund late-stage clinical trials and new product launches in exchange for future royalties, and when it receives ongoing payments from original innovators. Indirect royalty funding. Royalty Pharma's current portfolio includes rights to 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, GlaxoSmith'mtecurtisyKline T and Johnson & Johnson's Johnson's Tremfya, Roche's Evrysdi, Gilead's Trodelvy and 10 product candidates in development.
About clean technology
PureTech is a biotherapeutics company committed to changing the treatment paradigm for devastating diseases. The company has built a broad and deep pipeline by leveraging the expertise of its experienced Research and Development team and extensive network of scientists, clinicians and industry leaders. The pipeline, which is promoted internally and through PureTech's established entities, consists of 26 candidate therapeutics and therapies, including two (Plenity®and EndeavorRx®) has received US FDA approval and European marketing approval, and a third (KarXT) will soon be submitted for FDA approval, according to the company's latest update. Based on its unique knowledge and technology platform, the PureTech team initially identified or discovered all the underlying processes and platforms that led to this pipeline of therapeutic candidates against key validation endpoints.
For more information, visitwww.puretechhealth.comOr connect with us on Twitter @puretechh.
Forward-looking statements by Royalty Pharma
The information presented here does not claim to be exhaustive or to contain all the information you may need. Unless otherwise stated, the statements contained herein are made as of the date hereof and no delivery of this document or sale of any security at any time shall be construed as implying that the information contained herein is correct as of that date per at any time after such information will be updated or revised to reflect subsequently available information or changes occurring after the date of this Agreement.
This document contains statements that constitute "forward-looking statements" within the meaning of U.S. Private Securities Litigation Reform Act of 1995, including statements expressing the Company's views, expectations, beliefs, plans, objectives, assumptions or projections about future events or future results and contrary statements reflecting historical events. Examples include discussion of Royalty Pharma's strategy, financing plans, growth opportunities and market development. In some cases, you can identify such terms by words such as "expects", "intends", "believes", "estimates", "plans", "goals", "projects", "expects", "may". forward-looking statements," "will," "will," "could," or "should," the negative of those terms or similar expressions. Forward-looking statements are based on management's current beliefs and assumptions and information currently available to the Company. These forward-looking statements are not guarantees of Royalty Pharma's performance and you should not place undue reliance on such statements. Forward-looking statements are subject to various risks, uncertainties and other variables and factors. Such Risks and Uncertainties There may be inaccurate statements and readers are cautioned not to place undue reliance on such statements. Many of these risks are beyond the Company's control and could cause actual results to differ materially from those expected. Forward-looking statements contained in this document speak only as of the date of this document. Except as required by law, the Company disclaims any obligation to update these statements or to release publicly the results of any revisions to such statements to reflect future events or developments.
Certain information contained in this document relates to or is based on surveys, publications, surveys and other data obtained from third-party sources and the Company's internal estimates and studies. Although the Company believes these third-party sources to be reliable as of the date hereof, it has not verified and makes no representation as to the adequacy, fairness, accuracy or completeness of any information obtained from third-party sources. In addition, all market data contained in this document is subject to certain assumptions and limitations, and no assurance can be given as to the accuracy or reliability of these assumptions. Although the Company believes its own internal investigations to be reliable, these investigations have not been verified by any independent source.
For more information, see Royalty Pharma's reports and filings with the Securities and Exchange Commission (SEC). You can obtain these documents by visiting EDGAR on the SEC's website atwww.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 in this press release that are not historical facts should be considered forward-looking statements, including, without limitation, statements relating to Royalty Pharma Statements Regarding Karuna Rights, KarXT, Its Development, Clinical Milestones, and Potential Therapeutic Applications, Full Terms of Agreement, PureTech's Development, and Strategy Related to Its Development, Clinical Milestones, and Potential Therapeutic Applications pipeline and its candidates and our future prospects. 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, without limitation, these risks , our uncertainties and Other important factors described under the caption "Risk Factors" in our annual report on Form 20-F filed with the Securities and Exchange Commission for the year ended December 31, 2021 and in our other regulatory filings. These forward-looking statements are based on assumptions about the Company's current and future business strategies and its future operating environment. Any forward-looking statement speaks only as of the date of this press release. We undertake no obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise, except as required by legal and regulatory requirements.
Under the European Union (Withdrawal) Act 2018 ("March"). Following the publication of this notice through the Regulatory Information Service ("RIS"), this confidential information is now considered public.
Royalty Pharma Investor Relations and Communications
+1 (212) 883-6772
Contact PureTech Investors
PureTech media communication
Ben Atwell, Rob Wind
+44 (0) 20 3727 1000
+1 774 278 8273
1Status: February 23, 2023