Geron: Royalty Pharma Acquires Royalty Interest in RYTELO for $125 Million
Deal News | Nov 07, 2024 | RP Management LLC
Royalty Pharma plc has announced a $125 million acquisition of a synthetic royalty on the U.S. sales of Geron Corporation's RYTELO, a drug designed for treating low- to intermediate-1 risk myelodysplastic syndromes (LR-MDS) with transfusion-dependent anemia. Approved by the FDA in 2024, RYTELO also appears in updated NCCN guidelines as a treatment for symptomatic anemia in LR-MDS patients. This acquisition involves tiered royalty payments based on sales and will enhance Royalty Pharma's already significant $925 million synthetic royalty funding forecast for 2024. Pablo Legorreta, CEO of Royalty Pharma, emphasized the strategic partnership with Geron, while Geron's CEO, John Scarlett, lauded the financial stability and flexibility brought by this deal. Legal and financial advisors for this transaction include TD Cowen, Cooley LLP, Goodwin Procter, and Fenwick & West LLP.
Sectors
- Biopharmaceuticals
- Investment & Asset Management
Geography
- United States – The transaction involves U.S.-based companies and the acquisition is specific to the U.S. sales of RYTELO.
Industry
- Biopharmaceuticals – The primary focus of the article is on the acquisition of royalties concerning the biopharmaceutical product RYTELO, produced by Geron Corporation.
- Investment & Asset Management – The transaction involves Royalty Pharma's investment in acquiring biopharmaceutical royalties, highlighting its role in funding and asset management in pharmaceuticals.
Financials
- 125 million – Acquisition price for the synthetic royalty on U.S. sales of RYTELO.
- 925 million – Projected total synthetic royalty funding for Royalty Pharma in 2024 following this acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Royalty Pharma plc | Buyer | Company | A company specializing in acquiring biopharmaceutical royalties, seeking to expand its portfolio through this transaction. |
| Geron Corporation | Target | Company | Biopharmaceutical company involved in the development of RYTELO, entering into a partnership with Royalty Pharma for royalty sharing. |
| TD Cowen | Financial Advisor | Company | Provided financial advisory services to Geron Corporation for the transaction. |
| Cooley LLP | Legal Advisor | Company | Served as legal advisor to Geron in the transaction. |
| Goodwin Procter | Legal Advisor | Company | Provided legal advisory services to Royalty Pharma. |
| Fenwick & West LLP | Legal Advisor | Company | Also served as legal advisor to Royalty Pharma in the transaction. |
| Pablo Legorreta | CEO | Person | Founder and Chief Executive Officer of Royalty Pharma. |
| John Scarlett | CEO | Person | President and Chief Executive Officer of Geron Corporation. |