Dechert Advises Royalty Pharma on $2.025 Billion Strategic Funding Partnership With MorphoSys

Dechert advised Royalty Pharma plc on IP-diligence in its $2.025 billion strategic funding partnership as part of MorphoSys' $1.7 billion acquisition of Constellation Pharmaceuticals.  This partnership is expected to fuel the expansion of the combined company's capabilities to help enable the development and potential approvals of important cancer treatments. Royalty Pharma’s commitment includes a $1.425 billion upfront payment, milestone payments up to $150 million, providing access to $350 million in Development Funding Bonds and an equity investment of $100 million.

This funding partnership is anchored by Royalty Pharma's acquisition of MorphoSys' rights to receive future royalties on Janssen's drug Tremfya (guselkumab).  Tremfya is an anti-interleukin (IL)-23 antibody, approved for the treatment of adults living with moderate to severe plaque  soriasis, and for adults with active psoriatic arthritis and is also in clinical development for ulcerative colitis and Crohn's disease.  Royalty Pharma also acquired rights to future royalties on four development-stage  therapies.

Royalty Pharma is the largest buyer of biopharmaceutical royalties and a leading funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals and not-for-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies.

The Dechert team advising Royalty Pharma includes intellectual property partners Carl Morales, Ph.D. and Scott Warren; associate Blaine Hackman, Ph.D.; technical advisor Victoria Pedanou, Ph.D.; patent agents Todd Macklin, Ph.D., Michael Manas, Ph.D. and Kurtis Anderson, Ph.D.; and law clerk Robin Brese, Ph.D.

About Dechert

Dechert is a leading global law firm with 24 offices around the world. We advise on matters and transactions of the greatest complexity, bringing energy, creativity and efficient management of legal issues to deliver commercial and practical advice for clients.