Ionis, Royalty Pharma ink royalty deal for up to $1.1B
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Ionis Pharmaceuticals (NASDAQ:IONS) said Royalty Pharma (NASDAQ:RPRX) has acquired an interest in Ionis' royalty in Biogen's (BIIB) Spinraza (nusinersen) and Novartis' (NVS) pelacarsen for up to $1.125B.
This includes an upfront payment of $500M and up to $625M in additional pelacarsen milestone payments, Ionis noted.
Biogen licensed the spinal muscular atrophy (SMA) therapy Spinraza from Ionis in 2016. Novartis licensed pelacarsen â a drug aimed at elevated lipoprotein(a) (type of bad cholesterol), which is risk factor for cardiovascular disease â from Ionis in 2019.
Under the monetization transaction, Royalty Pharma will receive: 25% of Ionis' Spinraza royalty payments through 2027, increasing to 45% of royalty payments in 2028, on up to $1.5 billion in annual sales. Royalty Pharma's royalty interest in Spinraza will revert to Ionis after total Spinraza royalty payments reach either $475M or $550M, depending on the timing and occurrence of certain events.
Royalty Pharma will also receive 25% of Ionis' pelacarsen royalty payments.
Ionis noted that it retains all rights to $650M in pelacarsen development, regulatory and commercial milestones from Novartis. Ionis' agreement with Novartis entitles Ionis to receive tiered royalties in the mid-teens to low 20% range on net sales of pelacarsen, the company added.
Under the agreement with Biogen, Ionis is entitled to tiered royalties up to the mid-teens on annual worldwide net sales of Spinraza.