RARE Daily

BioCryst Secures $325 Million of Funding in Royalty Deal

December 7, 2020

Rare Daily Staff

Three days after receiving U.S. Food and Drug Administration approval to market Orladeyo for hereditary angioedema, BioCryst Pharmaceuticals said it entered into a deal with Royalty Pharma and Athyrium Capital Management for $325 million in funding to support its launch.

Hereditary angioedema (HAE) is a rare, genetic disorder that results in recurring attacks of swelling in various parts of the body, including the abdomen, face, feet, genitals, hands, and throat that can be can debilitating and painful. Attacks that obstruct the airways are potentially life-threatening due to the risk of asphyxiation.

Orladeyo (berotralstat) is a novel once-daily oral plasma kallikrein inhibitor being developed for both prophylactic and acute treatment of HAE attacks. Kallikrein is an enzyme that is chronically uncontrolled in people with HAE. One capsule of Orladeyo per day works to prevent HAE attacks by decreasing the activity of plasma kallikrein.

As part of the deal, $250 million will be available at closing\ to support the launch of Orladeyo (berotralstat) in hereditary angioedema (HAE) and the development of BioCryst’s oral Factor D inhibitor, BCX9930.

Royalty Pharma will provide BioCryst with an upfront cash payment of $125 million and will receive royalties of 8.75 percent on direct annual net sales of Orladeyo up to $350 million, 2.75 percent on sales between $350 million and $550 million, no royalty on sales over $550 million, and a tiered percentage of sublicense revenue for Orladeyo in certain territories. In addition, Royalty Pharma will receive a 1 percent royalty on global net sales of BCX9930, if approved.

A fund managed by Athyrium Capital Management will provide BioCryst with a $200 million credit facility, of which BioCryst will draw $125 million at closing. The additional capital will be available in two tranches at BioCryst’s option, upon reaching defined revenue milestones. The credit facility bears interest at LIBOR plus 8.25 percent (with a LIBOR floor of 1.75 percent) and is interest-only for the entire five year term, with all outstanding principal due at maturity.

BioCryst plans to invest the combined proceeds to support the launch of Orladeyo in the U.S. and Europe and to advance the development of BCX9930 into clinical trials in multiple complement-mediated diseases. Additionally, BioCryst will repay its existing facility with MidCap Financial.

“We believe Orladeyo will be a transformative medicine and we are excited to partner with BioCryst to bring this oral, once-daily medicine to HAE patients,” said Pablo Legorreta, CEO of Royalty Pharma. “Based on the encouraging proof of concept data in paroxysmal nocturnal hemoglobinuria with BCX9930, we also believe this oral Factor D inhibitor offers substantial opportunities across multiple complement-mediated diseases.”

Photo: Pablo Legorreta, CEO of Royalty Pharma





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