Royalty Pharma plc has entered into an agreement to acquire royalty interests and associated milestone payments on the drug frexalimab from ImmuNext, Inc. for an estimated $525 million, inclusive of transaction costs. Frexalimab is an innovative treatment for multiple sclerosis currently in phase 3 trials, with potential applications in other autoimmune diseases. On top of base royalty payments, the deal grants Royalty Pharma tiered royalties on net sales, reflecting the drug’s significant market potential, projected by Sanofi to exceed $5 billion at its peak. This acquisition expands Royalty Pharma’s sizeable development-stage portfolio, promising a significant increase in annual royalty revenues. This strategic investment underscores Royalty Pharma’s role as a major funder of biopharmaceutical innovation, holding a diverse portfolio of commercial and development-stage products. The transaction’s closing is anticipated for May 2024, pending the fulfillment of standard closing conditions. Legal advisory for Royalty Pharma came from Gibson Dunn & Crutcher, Fenwick, and Maiwald, while ImmuNext was advised by Goodwin Procter LLP and Jefferies LLC. Despite the forward-looking nature of the press release, the company disclaims any obligation to update the information following the publication date.

Biopharmaceuticals, Investment Services & Portfolio Management, Legal Services,United States, International

https://www.globenewswire.com/news-release/2024/05/09/2878561/0/en/Royalty-Pharma-to-Acquire-Royalty-Interest-in-Sanofi-s-Frexalimab.html