Fenwick represented Royalty Pharma (Nasdaq: RPRX), a buyer of biopharmaceutical royalties and funder of innovation across the biopharmaceutical industry, in funding agreements with Cytokinetics (Nasdaq: CYTK), a late-stage biopharmaceutical company focused on discovering, developing and commercializing muscle activators and inhibitors.
Under the terms of the agreements, Royalty Pharma will provide Cytokinetics long-term capital of up to $300 million to support the potential commercialization of omecamtiv mecarbil and the further development of aficamten, and other general corporate purposes. In addition, Royalty Pharma has purchased from Cytokinetics a royalty on aficamten of 4.5% on sales up to $1 billion and 3.5% on sales above $1 billion, subject to certain potential step-downs, in exchange for payments of up to $150 million. From these transactions, Cytokinetics anticipates receipt of up to $150 million in near-term funding. More information can be obtained from Royalty Pharma’s news announcement.
The Fenwick team included intellectual property partner Carl Morales and senior associate Glenn Foulds; and litigation partner Kevin McGann and associate Eric Majchrzak.