PureTech Health and Royalty Pharma enter KarXT royalty agreement up to $500m

pharmafile | March 23, 2023 | News story | Sales and Marketing  

Royalty Pharma have acquired a $500m interest in PureTech’s royalty in Karuna Therapeutics’ KarXT, with $100m cash up front and further conditional payments to follow.

This deal means PureTech has sold its right to a 3% royalty from Karuna to Royalty Pharma on sales up to $2bn, after this threshold Royalty Pharma will receive 33% and PureTech will retain 67% of royalty payments.

Pablo Legorreta, Royalty Pharma’s founder and CEO, commented: “We are delighted to partner with PureTech, which began a remarkable innovation story with KarXT that has demonstrated an impressive clinical profile in phase 3. We believe this important therapy will have a significant impact on patients with schizophrenia if approved by the FDA. This medicine 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.”

Daphne Zohar, founder and CEO of PureTech, added: “We’ve seen extraordinary clinical success demonstrated by KarXT, which, if approved, will be the first new mechanism for treating schizophrenia in more than fifty years. KarXT has now demonstrated efficacy in registration-enabling studies and is heralded as a potential treatment paradigm shift that could impact millions of patients. This agreement will provide PureTech with additional non-dilutive capital to advance our wholly owned Pipeline, including our rapidly maturing clinical programs, towards potential commercialisation. Such non-dilutive sources of capital have allowed us to fund our pipeline and operations without having to raise capital from the public markets in over five years, and we are pleased to be able to benefit from the success of our invented programmes.”


Betsy Goodfellow

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