ImmuNext, Inc., a developer of immune-based therapeutics, has engaged Royalty Pharma plc in a significant agreement where Royalty Pharma will acquire future royalties and milestone payments associated with the drug frexalimab for an upfront payment of around $525 million, considering estimated transaction costs. Frexalimab, a pioneering anti-CD40 ligand monoclonal antibody developed by Sanofi, could foster new treatments for a range of immune-related disorders. Under the licensing terms agreed with Sanofi, ImmuNext stands to receive tiered royalties based on net sales with Royalty Pharma now gaining 100% of the net royalties up to $2 billion, and a smaller percentage thereafter. The deal structure also involves substantial milestone payments contingent on regulatory, clinical, and sales achievements. The Goodwin team, led by Sarah Solomon and others, provided legal advisory services for the transaction, encompassing various specializations such as Intellectual Property and Tax Law. Aiming for closure in May 2024, the transaction is yet to fulfill customary closing conditions.

Biopharmaceuticals, Legal Advisory, Private Equity,United States

https://www.goodwinlaw.com/en/news-and-events/news/2024/05/announcements-lifesciences-ma-royalty-pharma-to-acquire-royalty