Royalty Pharma Purchases PureTech Royalties in KarXT for $500mPharmaceutical
PureTech's royalty in Karuna Therapeutics' KarXT has been purchased by Royalty Pharma for $100 million in an immediate cash buy, followed by an extra $400 million further down the line. However, this is dependent on meeting specific legal and economic benchmarks.
Royalty Pharma is the biggest consumer of biopharmaceutical royalties and a key investor in innovation throughout the life sciences sector, while PureTech is a clinical stage biotherapeutics firm committed to shifting the standard for managing fatal illnesses.
“PureTech's royalty in Karuna Therapeutics' KarXT has been purchased by Royalty Pharma for $100 million in an immediate cash buy“
CEO of Royalty Pharma, Pablo Legorreta, said that “we believe this important therapy will have a significant impact on patients with schizophrenia if approved by the FDA. This is a notable addition to our royalty portfolio and is well aligned with our strategy of investing in breakthrough therapies that address areas of high unmet medical need.”
PureTech’s CEO, Daphne Zohar, explained that if KarXT is signed off, it “will be the first new mechanism for treating schizophrenia in more than fifty years.” And “provide PureTech with additional non-dilutive capital to advance our Wholly Owned Pipeline.”
The details of the royalties are as follows: PureTech will receive 3% from Karuna’s KarXT product on revenues up to $2bn per year. Following this, PureTech will keep 67% of licensing fees and Royalty Pharma will have the remaining 33%.
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