Regenxbio Signs Royalty Bond Agreement for up to $250 Million

Rare Daily Staff

Regenxbio said it closed a non-dilutive, limited recourse royalty bond agreement with $150 million at closing and up to a total of $250 million with Healthcare Royalty.

The agreement monetizes select anticipated royalties and milestones, and provides both immediate and expected future, non-dilutive capital. Regenxbio said the initial funding extends its cash runway into early 2027.

The financing comes as Regenxbio anticipates multiple milestones, including a potential U.S. Food and Drug Administration approval of its experimental gene therapy RGX-121 for MPS II, a top-line data readout and BLA submission for its experimental gene therapy for Duchenne muscular dystrophy RGX-202, and top-line data readouts for two pivotal studies of experimental subretinal gene therapy ABBV-RGX-314 for wet AMD.

Under the terms of the agreement, Healthcare Royalty will provide Regenxbio with up to $250 million bond in exchange for rights, up to the principal amount and accrued interest, to anticipated royalty payments from sales of Zolgensma for spinal muscular atrophy, as well as royalty and certain milestones payments from RGX-121 and RGX-111 for MPS II and MPS I, pursuant to a partnership with Nippon Shinyaku, and NAV Technology Platform licensees Rocket Pharmaceuticals and Ultragenyx.

Healthcare Royalty will receive quarterly interest payments derived solely from the royalty and milestone revenue received, less any payments to Regenxbio’s upstream licensors, and warrants to purchase up to 268,096 shares of the company’s common stock at an exercise price of $14.92, which is a 100 percent premium to Regenxbio’s 30-day weighted average price.

In addition to the $150 million received at closing, $50 million will be funded by April 30, 2027, upon the achievement of Zolgensma sales milestones and an additional $50 million will be funded upon the mutual agreement of the parties, further extending the company’s cash runway.

“Along with fueling our late-stage activities, this transaction enables us to retain future potential non-dilutive opportunities and the potential long-term financial upside from our NAV licensees and MPS programs,” said Mitchell Chan, chief financial officer of Regenxbio.

Photo: Mitchell Chan, chief financial officer of Regenxbio