RegenxBio Sells Portion of Zolgensma Royalties for $200 Million
December 23, 2020
Rare Daily Staff
RegenxBio said that it has entered into an agreement to sell a portion of the royalty rights due it from Novartis Gene Therapies from the net sales of Zolgensma to entities managed by the private investment firm Healthcare Royalty Management for $200 million.
Zolgensma is the Novartis Gene Therapy approved for spinal muscular atrophy (SMA). Zolegensma is based on RegenexBio’s NAV technology, a next-generation vector technology that improves the delivery of gene therapies. Zolgensma is currently approved for the treatment of SMA in the United States, Japan, Europe, Brazil, and Canada. Novartis is also pursuing registration in additional countries.
RegenxBio said the transaction provides it with non-dilutive capital to continue the development of potential gene therapies for patients and the completion of its internal manufacturing capabilities.
“Our rapidly advancing internal pipeline has enabled us to broaden the potential impact that gene therapies can have for patients in both large and orphan indications,” said Kenneth Mills, president and CEO of RegenexBio.
Under the terms of the agreement, RegenexBio will receive $200 million from HCR as an upfront payment in exchange for RegenexBio’s royalty rights from the net sales of Zolgensma, including a portion of the royalties received in the fourth quarter of 2020, up to 1.3 times the purchase price until November 7, 2024 or, if such cap is not met by November 7, 2024, up to 1.5 times the purchase price thereafter. If either cap is met, the royalty rights would revert to RegenexBio.
Photo: Kenneth Mills, president and CEO of RegenexBio
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