RARE Daily

BioCryst Adds $350 Million in New Financing with Royalty Pharma and OMERS Capital Markets

November 22, 2021

BioCryst Pharmaceuticals, Royalty Pharma, and OMERS Capital Markets, entered into transactions totaling $350 million in new funding for BioCryst, with all funds immediately available at closing.

Photo: Jon Stonehouse, CEO of BioCryst

The funds from these transactions will enable further advancement of BCX9930, BioCryst’s oral Factor D inhibitor, which targets complement-mediated diseases, toward filing for registration in paroxysmal nocturnal hemoglobinuria (PNH), expand its development across multiple indications and support additional investment in the global launch of Orladeyo (berotralstat), an oral plasma kallikrein inhibitor indicated to prevent attacks of hereditary angioedema (HAE) in adult and pediatric patients 12 years and older.

Royalty Pharma, the largest buyer of pharmaceutical royalties in the world, paid $150 million upfront for royalties on combined annual net sales of BCX9930 and another earlier stage Factor D inhibitor of 3 percent on sales up to $1.5 billion, 2 percent on sales between $1.5 billion and $3 billion, and no royalty on sales over $3.0 billion. Royalty Pharma also purchased royalties of 0.75 percent on direct annual net sales of Orladeyo up to $350 million, 1.75 percent on sales between $350 million and $550 million, no royalty on sales over $550 million, and a tiered, declining percentage on Orladyeo sublicense revenue in certain territories. These royalties are additional to the royalties purchased by Royalty Pharma in December 2020.

OMERS, one of Canada’s largest defined benefit pension plans, paid $150 million upfront for a capped, tiered, declining royalty on direct annual net sales of Orladeyo. Under the agreement, BioCryst does not owe any royalties for the first two years. The first royalty payment from BioCryst to OMERS will occur based on royalties from direct annual net sales of Orladeyo in the fourth quarter of 2023. Once OMERS has achieved its maximum allowed total return under the agreement, no further royalty payments will be owed. OMERS will receive a royalty of at least 7.5 percent on annual net sales up to $350 million, 6 percent on sales between $350 million and $550 million, and no royalty on sales over $550 million. The maximum total return OMERS may earn under the agreement is capped at 1.425x or 1.550x, based on the level of 2023 global net sales of Orladeyo relative to a prespecified sales threshold.

Royalty Pharma also extended its relationship with BioCryst through a $50 million equity investment at a price of $13.00 per share.

BioCryst has also committed to access the additional $75 million available under an agreement with Athyrium Capital Management and will draw this $75 million in mid-2022.

“The focused execution of our plan this year, with the successful launch of Orladeyo and the rapid advancement of BCX9930, has led to further investment from exceptional and committed partners like Royalty Pharma and Athyrium, and new investment from OMERS,” said Jon Stonehouse, CEO of BioCryst. “The infusion of $350 million on top of our growing revenue base from Orladeyo, and our existing cash, enables us to invest now to maximize the value of our oral Factor D program and Orladeyo.”

Author: Rare Daily Staff

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