Dechert Advises Royalty Pharma in US$650 Million Royalty Purchase Agreement
Dechert LLP advised Royalty Pharma, a buyer of biopharmaceutical royalties, on a royalty purchase agreement with PTC Therapeutics, Inc. to acquire a portion of PTC’s royalty interest in Risdiplam, an investigational, orally administered survival motor neuron-2 (SMN2) splicing modifier for the treatment of spinal muscular atrophy. Under the terms of the agreement, PTC Therapeutics will receive US$650 million in cash from Royalty Pharma in return for approximately 43% of the Risdiplam royalties, up to a specified amount.
Royalty Pharma funds innovation in the biopharmaceutical industry through partnerships with companies to co-fund late-stage clinical trials and new product launches in exchange for future royalties, as well as through acquisitions of existing royalties from the original innovators.
The Dechert team advising Royalty Pharma included intellectual property partner Carl A. Morales, Ph.D. (New York), intellectual property associate Blaine M. Hackman, Ph.D. (New York) and patent agents Michael G. Manas, Ph.D. (Boston) and Todd Macklin, Ph.D. (New York).
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