Royalty Pharma acquires PTC Therapeutics' royalty on Roche’s Evrysdi for $240 million, with additional sales-based milestones.
Quiver AI Summary
Royalty Pharma plc announced its acquisition of the remaining royalty rights for Roche’s Evrysdi from PTC Therapeutics for $240 million upfront, along with potential sales-based milestones of up to $60 million. Evrysdi is an oral treatment for spinal muscular atrophy, approved by the FDA in 2020, and has treated over 21,000 patients, generating approximately CHF 1.6 billion in sales in 2024 with projected growth to CHF 2.3 billion by 2030. Following this deal, Royalty Pharma will hold 100% of the tiered royalties from Roche, with rates ranging from 8% to 16% based on sales thresholds, beginning in Q1 2026 based on Q4 2025 sales. The transaction emphasizes Royalty Pharma’s role as a significant player in biopharmaceutical funding and royalty acquisition, reflecting their extensive portfolio of leading therapies.
Potential Positives
- The acquisition positions Royalty Pharma to fully benefit from the projected growth of Evrysdi, which is anticipated to reach $2.9 billion in sales by 2030.
- Ownership of 100% of the tiered royalty structure enables Royalty Pharma to receive increasing royalties based on Evrysdi’s sales, providing a substantial revenue stream.
- The transaction reflects Royalty Pharma's strategy of expanding its portfolio in successful therapies, enhancing its presence in the biopharmaceutical sector.
Potential Negatives
- The acquisition of the royalties for Evrysdi may represent a significant financial commitment of $240 million upfront and additional potential payments, which could impact cash flow and financial stability if sales do not meet projections.
- The press release primarily highlights the potential future revenue from Evrysdi, which may not translate into guaranteed earnings, creating uncertainty around the actual benefits of the acquisition.
- The reliance on a single product's royalty payments (Evrysdi) for substantial future revenues raises concerns about the company's vulnerability to market fluctuations and the performance of this specific therapy.
FAQ
What recent acquisition did Royalty Pharma announce?
Royalty Pharma announced the acquisition of the final portion of PTC Therapeutics’ royalty on Roche’s Evrysdi for $240 million.
What is Evrysdi used for?
Evrysdi is an orally administered treatment for spinal muscular atrophy, modifying the survival motor neuron-2 (SMN2) splicing.
How much did Evrysdi generate in sales in 2024?
Evrysdi generated approximately CHF 1.6 billion ($1.9 billion) in sales in 2024, marking an 18% year-over-year growth.
What royalties will Royalty Pharma receive from Evrysdi sales?
Royalty Pharma will receive tiered royalties ranging from 8% to 16% based on worldwide net sales of Evrysdi.
When will Royalty Pharma start receiving increased royalties?
Royalty Pharma will start receiving increased royalties in the first quarter of 2026, based on fourth quarter 2025 sales.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
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Full Release
NEW YORK, Dec. 29, 2025 (GLOBE NEWSWIRE) -- Royalty Pharma plc (Nasdaq: RPRX) today announced that it has acquired the final portion of PTC Therapeutics’ remaining royalty on Roche’s Evrysdi for $240 million upfront and up to $60 million in sales-based milestones.
Evrysdi, marketed by Roche, is an orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy. Evrysdi was approved by the FDA in 2020 and has treated over 21,000 patients worldwide. In 2024, Evrysdi generated sales of approximately CHF 1.6 billion ($1.9 billion), representing 18% year-over-year growth at constant exchange rates, and is projected to reach CHF 2.3 billion ($2.9 billion) of sales by 2030 based on analyst consensus.
Transaction Terms
Following today’s transaction, Royalty Pharma will own 100% of the tiered 8% to 16% royalty paid by Roche on worldwide net sales of Evrysdi. Royalty Pharma will be entitled to royalties of 8% on sales up to $500 million, 11% on sales between $500 million and $1 billion, 14% on sales between $1 billion and $2 billion, and 16% on sales over $2 billion. Royalty Pharma will receive the increased royalty starting in the first quarter of 2026, based on Evrysdi product sales in the fourth quarter of 2025.
Advisors
Goodwin and Maiwald acted as legal advisors to Royalty Pharma.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies. Royalty Pharma has assembled a portfolio of royalties which entitles it to payments based directly on the top-line sales of many of the industry’s leading therapies. Royalty Pharma funds innovation in the biopharmaceutical industry both directly and indirectly - directly when it partners with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, and indirectly when it acquires existing royalties from the original innovators. Royalty Pharma’s current portfolio includes royalties on more than 35 commercial products, including Vertex’s Trikafta and Alyftrek, Johnson & Johnson’s Tremfya, GSK’s Trelegy, Roche’s Evrysdi, Servier’s Voranigo, Biogen’s Tysabri and Spinraza, AbbVie and Johnson & Johnson’s Imbruvica, Astellas and Pfizer’s Xtandi, Pfizer’s Nurtec ODT, and Gilead’s Trodelvy, among others, and 20 development-stage product candidates. For more information, visit www.royaltypharma.com .
Royalty Pharma Investor Relations and Communications
+1 (212) 883-6637
[email protected]
