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Royalty Pharma gets royalty interest in Risdiplam in USD 650 Mn deal

Royalty Pharma gets royalty interest in Risdiplam in USD 650 Mn deal
Royalty Pharma gets royalty interest in Risdiplam in USD 650 Mn deal

As reported by credible sources, Royalty Pharma plc entered into a contract with PTC therapeutics Inc. to acquire a portion of PTC’s royalty interest in risdiplam, in a USD 650 million deal.

For those uninitiated, risdiplam is a new, orally directed SMN2, joining modifier which aids treat spinal muscular atrophy. Spinal muscular atrophy is a serious, genetic, progressive neuromuscular ailment that causes weakness in the muscles and ailment-related problems. It is responsible for deaths in infants and is a rare disease, affecting roughly one in every 11,000 newborns.

The risdiplam royalty purchase is projected to have nominal impact on Royalty Pharma’s Adjusted cash receipts & cash flow in 2020 and 2021, with increasing deposit beyond 2021 offering improved long-term growth to the company.

Royalty Pharma is reportedly acquiring about 43% of the royalty up to a specified amount. PTC had earlier revealed that it is eligible to tiered royalties extending from 8% to 16% on global net product sales of risdiplam. 

Speaking of the move, Founder & CEO of Royalty Pharma, Pablo Legorreta said that risdiplam is aligned with their high value, differentiated therapeutics tackle diseases whose medical needs are unmet. The company knows the significance of a therapy to deal with all categories of SMA.

CEO of PTC Therapeutics, Stuart W. Peltz, stated that development and profit-oriented risdiplam represents how PTC's strengths in advanced scientific methods to deal with diseases whose medical needs are not yet met would be valuable for all their shareholders. He further added that the announcement of their deal with Royalty Pharma will further lead to growth and innovation across their varied rare ailment portfolio.

Source- https://www.benzinga.com/pressreleases/20/07/g16685835/royalty-pharma-acquires-royalty-interest-in-risdiplam-from-ptc-therapeutics

 

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Vinisha Joshi

Despite graduating with an engineering degree in electronics and communication, Vinisha Joshi chose the road less travelled, and decided to pursue her career in content writing . Currently, she pens down articles for cuereport.com and a few other distinguished news platforms, pertaining to business and finance.