– Transaction adds another innovative rare disease therapy to DRI’s expanding portfolio –
– Deal structure offers risk sharing with milestone payments for positive performance –
– Long-term patent-protected exclusivity extends DRI’s cash flows –
TORONTO, Nov. 28, 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 worldwide sales of Xenpozyme (olipudase alfa) for a purchase price of US$30 million. Additional performance-based milestones of up to US$26.5 million may be paid should the sales of the drug outperform expectations.
Xenpozyme is the only product developed and approved for the treatment of non-central nervous system manifestations of acid sphingomyelinase deficiency (“ASMD”), also known as Niemann-Pick disease, in pediatric and adult patients. Xenpozyme was approved in Japan in March 2022, by the European Commission in June 2022, and by the U.S. Food and Drug Administration (“FDA”) in August 2022. There are no other products currently known to be in development for the treatment of ASMD. Xenpozyme is marketed worldwide by Sanofi S.A. (“Sanofi”). ASMD is an extremely rare, progressive genetic disease with significant morbidity and mortality, especially among infants and children. Signs and symptoms of ASMD may include enlarged spleen or liver, difficulty breathing, lung infections, and unusual bruising or bleeding, among other disease manifestations. Current management of the disease includes palliative and supportive care to manage the symptoms.
Xenpozyme is an enzyme replacement therapy designed to replace deficient or defective acid sphingomyelinase (ASM), an enzyme that allows for the breakdown of the lipid sphingomyelin. In individuals with ASMD, the insufficient amount of the ASM enzyme means sphingomyelin is poorly metabolized, potentially leading to lifelong accumulation of sphingomyelin and damage to multiple organs.
“Xenpozyme is a product that provides ASMD patients and their families with a disease-modifying therapy where none previously existed. The drug represents a transformational shift in therapies available to patients who suffer from ASMD” said Behzad Khosrowshahi, Chief Executive Officer of DRI Healthcare Trust. “The addition of royalties on the sales of Xenpozyme is well aligned with DRI’s goal of seeking accretive, long-term royalties that continue to diversify the Trust’s exposure to the biopharmaceutical industry.”
The transaction entitles DRI to royalties equal to approximately one percent of worldwide net sales of Xenpozyme. DRI is entitled to receive semi-annual royalty payments in respect of net sales of Xenpozyme commencing from the transaction date on a two-quarter lag from the respective half-year period. For sales made in the first and second quarters of a year, DRI expects to receive its royalty payment in the fourth quarter of that year. For sales made in the third and fourth quarters of the year, DRI expects to receive its royalty payment in the second quarter of the following year. DRI expects to receive royalties on net sales of Xenpozyme for approximately 15 years.
Xenpozyme addresses a significant unmet need in ASMD patients. It is an intravenously infused recombinant human acid sphingomyelinase enzyme intended to directly replace ASM expression in patients with ASMD, thereby improving clinical manifestations of the disease.
ASMD is a rare, progressive, and potentially life-threatening lysosomal storage disorder. ASMD is a disease spectrum and patients are characterized by neurological (Type A) and non-neurological (Type B) manifestations. The estimated prevalence of ASMD is widely variable and is approximately 2,000 patients worldwide. Patients with ASMD Type B have varying degrees of non-neurologic symptoms such as hepatosplenomegaly, atherogenic lipid profile, interstitial lung disease with progressive impairment of pulmonary function and hematologic abnormalities including cytopenias. Other common clinical manifestations include liver dysfunction, heart disease, skeletal abnormalities, and growth delays. Some patients with ASMD who survive beyond early childhood have intermediate phenotypes (ASMD Type A/B) characterized by combinations of non-neurologic and mild to severe neurologic symptoms. Common symptoms include shortness of breath, joint or limb pain, abdominal pain, bleeding, and bruising. The disease often leads to chronic fatigue, limited physical or social activity and difficulties in performing daily activities or work. Many patients die before or in early adulthood, often from pneumonia, respiratory failure, or liver failure. Available treatments are limited to symptom management and supportive care.
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$2.5 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 we expect to receive royalties on net sales of Xenpozyme for approximately 15 years. 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 Xenpozyme, 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