Royalty Pharma plc (NSDQ:RPRX) will acquire residual royalty interest in Vertex Pharmaceuticals’ cystic fibrosis (CF) treatments, which the Cystic Fibrosis Foundation owns.
Royalty Pharma will pay $575 million in the deal and could shell out an additional $75 million in milestone payments.
The company had already owned 50% of the foundation’s royalty stream.
Once a little-known private equity investor, Royalty Pharma has quietly acquired partial rights related to several best-selling drugs, including arthritis treatment Humira, one of the world’s best-selling drugs.
Earlier this year, the company raised $2.2 billion in its initial public offering.
In its Cystic Fibrosis Foundation deal, Royalty Pharma will receive a percentage of sales from ivacaftor, lumacaftor, tezacaftor and elexacaftor.
The royalties the company receives from the drugs are not tied to patents. The patent for ivacaftor’ expires in 2027.
In all, the cystic fibrosis drug portfolio generated more than $4 billion in revenues in 2019.
In its deal with the Cystic Fibrosis Foundation, Royalty Pharma will receive a percentage of sales from the drugs ivacaftor, lumacaftor, tezacaftor and elexacaftor.
The royalties the company receives from the drugs are not tied to patents. The patent for ivacaftor’ expires in 2027.
In all, the cystic fibrosis drug portfolio generated more than $4 billion in revenues in 2019.
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