Ascendis Pharma And Royalty Pharma Enter Into $150M Royalty Funding Agreement; Proceeds To Support Continued Development And Commercialization Of Endocrine Rare Disease Products, And General Corporate Purposes
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Ascendis Pharma A/S (NASDAQ:ASND) and Royalty Pharma plc (NASDAQ:RPRX) have entered into a $150 million capped synthetic royalty funding agreement based on U.S. net SKYTROFA revenue. Ascendis Pharma will receive an upfront payment of $150 million in exchange for a 9.15% royalty on U.S. net SKYTROFA revenue, beginning on January 1, 2025. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 1.925x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2031.
September 05, 2023 | 8:03 pm
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Ascendis Pharma has entered into a $150 million royalty funding agreement with Royalty Pharma, which will provide additional capital for the company's operations and development of its products.
The funding agreement provides Ascendis Pharma with additional capital, which can be used for the continued development and commercialization of its products. This could potentially lead to increased revenues in the future, which would be positive for the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
Royalty Pharma has entered into a $150 million royalty funding agreement with Ascendis Pharma, which will provide Royalty Pharma with a 9.15% royalty on U.S. net SKYTROFA revenue.
The funding agreement provides Royalty Pharma with a new source of revenue through the 9.15% royalty on U.S. net SKYTROFA revenue. This could potentially lead to increased revenues for Royalty Pharma, which would be positive for the company's stock price.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100