– Transaction adds a well-established ophthalmology product that generates substantial near-term cash flows, with long-term structural growth anticipated –
– Third transaction of 2022 with US$184.5 million deployed YTD –
– DRI to hold conference call to provide business update at 10:00 am ET this morning –
TORONTO, Oct. 3, 2022 /CNW/ – DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (“DRI” or “the Trust”) today announced that a wholly-owned subsidiary of DRI has acquired a royalty interest in Omidria from Omeros Corporation (“Omeros”) for a purchase price of US$125 million.
Omidria was approved by the U.S. Food and Drug Administration in May 2014 and the European Medicines Agency in July 2015 for intracameral use during cataract surgery or intraocular lens replacement to maintain pupil dilation and reduce postoperative pain. Omidria is marketed by Rayner Surgical (“Rayner”), one of the world’s leaders in the field of cataract surgery with operations in over 80 countries worldwide.
“We are pleased to announce our partnership with Omeros and look forward to continuing to work with their team,” said Behzad Khosrowshahi, Chief Executive Officer of DRI Healthcare Trust. “Adding Omidria to our portfolio represents a significant and strategic transaction for DRI. It is expected to immediately contribute meaningful and growing cash flows to our portfolio. With this transaction DRI has now deployed US$184.5 million over three transactions so far in 2022.”
Royalties will be received by DRI monthly and will be subject to annual caps (US$1.67 million in aggregate for the four months from September 1, 2022 through December 31, 2022; US$13 million for 2023; US$20 million for 2024; US$25 million for each of 2025-2028 (inclusive); US$26.25 million for 2029; and US$27.5 million for 2030 with no entitlement thereafter). According to Omeros’ public filings, in the first six months of 2022 Omeros collected $31.1 million under the royalty being acquired.
Omidria is a bisulfite-free and preservative-free product that is indicated for intracameral irrigation during cataract surgery to maintain pupil dilation and reduce post operative pain. Sufficient mydriasis during cataract surgery is critical to a successful surgical outcome by providing visualization of the surgical field, a good red reflex and adequate room for intraocular manipulation of surgical instruments. Unlike pre-operatively administered topical drugs for mydriasis and pain management that are washed out of the eye by irrigation solution used during intraocular lens replacement, intracameral irrigation of Omidria exposes target tissues to consistent concentrations of phenylephrine and ketorolac throughout the entire procedure thereby maintaining intraoperative mydriasis and reducing post operative pain.
Omidria requires no modification to the current surgical procedure offering an easy addition to current treatments and surgical technique and, unlike products from unregistered compounding facilities, offers the added benefit of uniform production under Good Manufacturing Practices. There are no other intracameral administered mydriatic or pain management products in development.
Cataracts are a leading cause of visual impairment worldwide. A cataract is a clouding of the normally clear lens of the eye. Initially, the cloudiness may affect only a small part of the eye’s lens, but as the cataract grows larger, it clouds more of the lens and distorts light passing through the lens. Most cataracts develop slowly and do not disturb eyesight early on, but with time, cataracts will eventually interfere with vision. Clouded vision caused by cataracts can make it more difficult to read, drive a car (especially at night) or see expressions. At first, stronger lighting and eyeglasses can help with cataracts, but if impaired vision interferes with usual activities, cataract surgery is needed.
Cataract extraction surgery remains the most performed eye surgery by ophthalmologists as it is the leading cause of visual impairment, affecting approximately 65.2 million people worldwide, and causing moderate to severe vision loss in over 80 percent of cases. The prevalence of cataracts increases with age and surgical removal of the lens remains the only effective treatment for cataracts impairing visual acuity.
DRI will hold a conference call today at 10:00 am ET to discuss the transaction. A slide presentation will accompany the call and can be accessed via the webcast link below. All interested parties may join the conference call by dialing 1-888-664-6392 or 416-764-8659 approximately 15 minutes prior to the call to secure a line.
A question-and-answer session will follow the conference call, at which time the operator will provide instructions for submitting questions.
A live webcast of the conference call, including a slide presentation, will be available through https://app.webinar.net/ye5MdJXn8BN. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on the Trust’s website following the call date.
DRI Healthcare Trust is managed by DRI Capital Inc. (“DRI Capital”), the pioneer in global pharmaceutical royalty monetization with a more than 30-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharma companies. Since our founding in 1989, DRI Capital has deployed more than US$2 billion, acquiring more than 60 royalties on 40-plus drugs, including Eylea, Spinraza, Zytiga, Remicade, Keytruda and Stelara. DRI Healthcare Trust’s units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol “DHT.UN” and in U.S. dollars under the symbol “DHT.U”. To learn more, visit drihealthcaretrust.com or follow us on LinkedIn.
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking words such as “expect”, “continue”, “anticipate”, “intend”, “aim”, “plan”, “believe”, “budget”, “estimate”, “forecast”, “foresee”, “close to”, “target” or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements that our royalty entitlement is expected to immediately contribute meaningful and growing cash flows to our portfolio and that our royalty entitlement in Omidria will end in 2030. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in the Trust’s most recent annual information form. The forward-looking information in this news release is based on our assumptions regarding the performance of our royalty interest in Omidria, including with respect to worldwide sales. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and Management’s Discussion and Analysis. These filings are also available at the Trust’s website at drihealthcaretrust.com.
SOURCE DRI Healthcare Trust