Ultragenyx Pharmaceutical Inc. sold royalty rights for the net sales of its genetic disorder treatment in the EU, U.K. and Switzerland to Royalty Pharma Ltd in a $320 million deal.
Jointly developed by Ultragenyx and Tokyo-based Kyowa Kirin Co. Ltd., Crysvita, or burosumab, is approved by the U.S. Food and Drug Administration to treat X-linked hypophosphatemia, or XLH, in adults and children aged six months and older.
The drug received the European Commission's conditional approval in February 2018 to treat XLH in children who are at least a year old. Application for the expanded use in adults with XLH is under review by the European Medicines Agency.
XLH causes low phosphate levels in the blood, resulting in soft and weak bones. This can cause life-long physical disabilities and pain leading to an increased risk of fractures in adults and rickets in children, which can lead to lower-body deformity, delays in growth and decreased height.
Under the term of the agreement, if aggregate royalty payments received by Royalty Pharma are equal to or greater than 1.9 times the purchase price before Dec. 31, 2030, or when aggregate royalty payments are equal to or greater than 2.5 times the purchase price, if the prior threshold is not met by the end of 2030, the agreement will expire, upon which the EU, U.K. and Switzerland royalty payments will revert back to Ultragenyx.
Perella Weinberg Partners LP and J. Wood Capital Advisors LLC were financial advisers, and Gibson Dunn & Crutcher LLP was legal adviser to Ultragenyx for the agreement. Goodwin Procter LLP and Maiwald Patentanwalts GmbH were legal advisers to Royalty Pharma.