Fenwick represented Royalty Pharma (Nasdaq: RPRX), a buyer of biopharmaceutical royalties and funder of innovation across the biopharmaceutical industry, in IP diligence regarding Royalty Pharma’s $150 million capped synthetic royalty funding agreement with Ascendis Pharma, based on U.S. net sales of Skytrofa® (lonapegsomatropin-tcgd), a once weekly prodrug of human growth hormone (somatropin) approved in 2021 by the U.S. Food & Drug Administration for the treatment of pediatric patients 1 year and older who weigh at least 11.5 kg and have growth failure due to inadequate secretion of endogenous growth hormone.
Under the terms of the agreement, Ascendis Pharma receives an upfront payment of $150 million in exchange for a 9.15% royalty on U.S. net Skytrofa revenue, beginning on January 1, 2025. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 1.925x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2031. More information can be obtained from Royalty Pharma’s announcement.
The Fenwick team included intellectual property partner Dr. Carl Morales, senior associate Dr. Glenn Foulds and associate Dr. Lucas Greder.