- PTC to receive $1B in upfront cash for approximately 67% of
outstanding royalties, with option for additional $500M -
- Financing proceeds will be used
to retire Blackstone debt obligations and fund planned
operations -
SOUTH
PLAINFIELD, N.J., Oct. 19,
2023 /PRNewswire/ -- PTC Therapeutics, Inc. (NASDAQ:
PTCT) today announced an agreement with Royalty Pharma plc. to
monetize up to $1.5 billion of the
Evrysdi royalty stream. Under the agreement, Royalty Pharma
acquires additional royalties on Evrysdi for $1.0 billion upfront. The agreement includes
options for PTC to sell up to all of its retained royalties on
Evrysdi for up to $500 million or for
Royalty Pharma to acquire half of such retained royalties for up to
$250 million at a later date. PTC
maintains all economics associated with up to $250 million in remaining commercial sales
milestones associated with Evrysdi global net sales.
This agreement builds on the previous strategic partnership
established with Royalty Pharma in 2020. The initial agreement was
for the monetization of approximately 43% of the Evrysdi royalty
stream for $650 million. As a result
of the current agreement, PTC will maintain ownership of
approximately 19% of the Evrysdi royalty stream pending any
exercise of future options by PTC or Royalty Pharma.
The proceeds from the financing will be used to retire all
outstanding debt obligations with Blackstone Life Sciences and to
fund planned operations.
"We are pleased to expand our existing strategic partnership
with Royalty Pharma," said Matthew B.
Klein, M.D., Chief Executive Officer, PTC Therapeutics.
"This non-dilutive financing provides PTC with the capital to
support operations and allows for increased operational and
financial flexibility by removing the Blackstone debt obligation
from our balance sheet. In addition, the deal structure provides
important flexibility for additional non-dilutive capital over the
next two years."
"We are excited to acquire an additional royalty interest in
Evrysdi, a convenient, oral therapy that has transformed and
benefited the lives of SMA patients worldwide," said Pablo Legorreta, founder and Chief Executive
Officer of Royalty Pharma. "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."
Transaction Terms
Following the transaction announced today, PTC has agreed to
sell approximately 67% of both the outstanding 57% of the Evrysdi
royalties and the outstanding royalty over the existing cap from
the previous royalty financing agreement with Royalty Pharma.
Additionally, until December 31,
2025, PTC will have the option to sell the remainder of the
Evrysdi royalty to Royalty Pharma for $500
million in five $100 million
tranches, less royalties received. If fewer than three of these
options are exercised, Royalty Pharma has the option to purchase
50% of the remaining PTC royalty for $250
million less royalties received until March 31, 2026.
Advisors
Wilmer Cutler Pickering Hale and
Dorr LLP acted as legal advisor to PTC Therapeutics on the
transaction. Goodwin Procter,
Fenwick & West and Maiwald acted as legal advisors to Royalty
Pharma.
About Evrysdi (risdiplam)
Evrysdi is a survival motor
neuron 2 (SMN2) splicing modifier designed to treat SMA caused by
mutations in chromosome 5q that lead to survival motor neuron (SMN)
protein deficiency. Evrysdi is administered daily at home in liquid
form and non-invasively by mouth or by feeding tube.
Evrysdi is designed to treat SMA by increasing and sustaining
the production of SMN protein in the central nervous system (CNS)
and peripheral tissues. SMN protein is found throughout the body
and is critical for maintaining healthy motor neurons and core
motor functions such as swallowing, speaking, and breathing.
Evrysdi is currently approved in over 100 countries. The Evrysdi
SMA program is a collaboration between PTC, the SMA Foundation, and
Roche.
About PTC Therapeutics, Inc.
PTC is a global
biopharmaceutical company focused on the discovery, development and
commercialization of clinically differentiated medicines that
provide benefits to patients with rare disorders. PTC's ability to
innovate to identify new therapies and to globally commercialize
products is the foundation that drives investment in a robust and
diversified pipeline of transformative medicines. PTC's mission is
to provide access to best-in-class treatments for patients who have
little to no treatment options. PTC's strategy is to leverage its
strong scientific and clinical expertise and global commercial
infrastructure to bring therapies to patients. PTC believes this
allows it to maximize value for all its stakeholders. To learn more
about PTC, please visit us at www.ptcbio.com and follow us on
Facebook, Instagram, LinkedIn and Twitter at @PTCBio.
For More Information:
Investors:
Kylie
O'Keefe
+1 (908) 300-0691
kokeefe@ptcbio.com
Media:
Jeanine
Clemente
+1 (908) 912-9406
jclemente@ptcbio.com
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 release, other than statements of
historical fact, are forward-looking statements, including
statements regarding: the future expectations, plans and prospects
for PTC; advancement of PTC's joint collaboration program in SMA,
including the commercialization of any products therein or royalty
or milestone payments; PTC's strategy, future operations, future
financial position, future revenues and, projected costs; PTC's
expected use of proceeds from the agreement with Royalty Pharma
including PTC's intentions to pay off all obligations under and
retire all outstanding debt obligations with Blackstone Life
Sciences; and the objectives of management. Other forward-looking
statements may be identified by the words "guidance", "plan,"
"anticipate," "believe," "estimate," "expect," "intend," "may,"
"target," "potential," "will," "would," "could," "should,"
"continue," and similar expressions.
PTC's actual results, performance or achievements could differ
materially from those expressed or implied by forward-looking
statements it makes as a result of a variety of risks and
uncertainties, including those related to: the outcome of pricing,
coverage and reimbursement negotiations with third party payors for
PTC's products or product candidates that PTC commercializes or may
commercialize in the future; expectations with respect to the
commercialization of Evrysdi under our SMA collaboration;
significant business effects, including the effects of industry,
market, economic, political or regulatory conditions; changes in
tax and other laws, regulations, rates and policies; the eligible
patient base and commercial potential of Evrysdi or any of PTC's
other products or product candidates; PTC's scientific approach and
general development progress; and the factors discussed in the
"Risk Factors" section of PTC's most recent Quarterly Report on
Form 10-Q and Annual Report on Form 10-K, as well as any updates to
these risk factors filed from time to time in PTC's other filings
with the SEC. You are urged to carefully consider all such
factors.
As with any pharmaceutical under development, there are
significant risks in the development, regulatory approval and
commercialization of new products. There are no guarantees that any
product or product candidate will receive or maintain regulatory
approval in any territory, or prove to be commercially successful,
including Evrysdi.
The forward-looking statements contained herein represent PTC's
views only as of the date of this press release and PTC does not
undertake or plan to update or revise any such forward-looking
statements to reflect actual results or changes in plans,
prospects, assumptions, estimates or projections, or other
circumstances occurring after the date of this press release except
as required by law.
View original
content:https://www.prnewswire.com/news-releases/ptc-therapeutics-announces-evrysdi-royalty-agreement-with-royalty-pharma-for-up-to-1-5-billion-301961677.html
SOURCE PTC Therapeutics, Inc.