Royalty Pharma’s $650 Million Royalty Purchase Agreement With PTC Therapeutics


Dechert LLP advised Royalty Pharma on the deal.

Royalty Pharma, a buyer of biopharmaceutical royalties, enter into 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.

PTC is a science-led, patient-centered biopharmaceutical company focused ondiscovering, developing and commercializing medicine for patients with raredisease.

The Dechert team advising Royalty Pharma included intellectual property partner Carl A. Morales, Ph.D. (New York; Picture), 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).

Involved fees earner: Blaine Hackman – Dechert; Todd Macklin – Dechert; Michael Manas – Dechert; Carl Morales – Dechert;

Law Firms: Dechert;

Clients: Royalty Pharma;

Author: Ambrogio Visconti