– Transaction adds a well-established
ophthalmology product that generates substantial near-term cash
flows, with long-term structural growth anticipated –
– Third transaction of 2022 with US$184.5 million deployed YTD –
– DRI to hold conference call to provide
business update at 10:00 am ET this
morning –
TORONTO,
Oct. 3,
2022 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX:
DHT.U) ("DRI" or "the Trust") today announced that a wholly-owned
subsidiary of DRI has acquired a royalty interest in Omidria from
Omeros Corporation ("Omeros") for a purchase price of US$125 million.
Omidria was approved by the U.S. Food and Drug
Administration in May 2014 and the
European Medicines Agency in July
2015 for intracameral use during cataract surgery or
intraocular lens replacement to maintain pupil dilation and reduce
postoperative pain. Omidria is marketed by Rayner Surgical
("Rayner"), one of the world's leaders in the field of cataract
surgery with operations in over 80 countries worldwide.
"We are pleased to announce our partnership with
Omeros and look forward to continuing to work with their team,"
said Behzad Khosrowshahi, Chief
Executive Officer of DRI Healthcare Trust. "Adding Omidria to our
portfolio represents a significant and strategic transaction for
DRI. It is expected to immediately contribute meaningful and
growing cash flows to our portfolio. With this transaction DRI
has now deployed US$184.5 million
over three transactions so far in 2022."
Royalties will be received by DRI monthly and
will be subject to annual caps (US$1.67
million in aggregate for the four months from September 1, 2022 through December 31, 2022; US$13
million for 2023; US$20
million for 2024; US$25
million for each of 2025-2028 (inclusive); US$26.25 million for 2029; and US$27.5 million for 2030 with no entitlement
thereafter). According to Omeros' public filings, in the first six
months of 2022 Omeros collected $31.1
million under the royalty being acquired.
About Omidria
Omidria is a bisulfite-free and preservative-free
product that is indicated for intracameral irrigation during
cataract surgery to maintain pupil dilation and reduce post
operative pain. Sufficient mydriasis during cataract surgery is
critical to a successful surgical outcome by providing
visualization of the surgical field, a good red reflex and adequate
room for intraocular manipulation of surgical instruments. Unlike
pre-operatively administered topical drugs for mydriasis and pain
management that are washed out of the eye by irrigation solution
used during intraocular lens replacement, intracameral irrigation
of Omidria exposes target tissues to consistent concentrations of
phenylephrine and ketorolac throughout the entire procedure
thereby maintaining intraoperative mydriasis and reducing post
operative pain.
Omidria requires no modification to the current
surgical procedure offering an easy addition to current treatments
and surgical technique and, unlike products from unregistered
compounding facilities, offers the added benefit of uniform
production under Good Manufacturing Practices. There are no other
intracameral administered mydriatic or pain management products in
development.
About Cataracts
Cataracts are a leading cause of visual
impairment worldwide. A cataract is a clouding of the normally
clear lens of the eye. Initially, the cloudiness may affect only a
small part of the eye's lens, but as the cataract grows larger, it
clouds more of the lens and distorts light passing through the
lens. Most cataracts develop slowly and do not disturb eyesight
early on, but with time, cataracts will eventually interfere with
vision. Clouded vision caused by cataracts can make it more
difficult to read, drive a car (especially at night) or see
expressions. At first, stronger lighting and eyeglasses can help
with cataracts, but if impaired vision interferes with usual
activities, cataract surgery is needed.
Cataract extraction surgery remains the most
performed eye surgery by ophthalmologists as it is the leading
cause of visual impairment, affecting approximately 65.2 million
people worldwide, and causing moderate to severe vision loss in
over 80 percent of cases. The prevalence of cataracts increases
with age and surgical removal of the lens remains the only
effective treatment for cataracts impairing visual acuity.
Conference Call Dial-In and
Webcast
DRI will hold a conference call today at
10:00 am ET to discuss the
transaction. A slide presentation will accompany the call and can
be accessed via the webcast link below. All interested parties may
join the conference call by dialing 1-888-664-6392 or 416-764-8659
approximately 15 minutes prior to the call to secure a line.
A question-and-answer session will follow the
conference call, at which time the operator will provide
instructions for submitting questions.
A live webcast of the conference call, including
a slide presentation, will be available through
https://app.webinar.net/ye5MdJXn8BN. Please connect at least 15
minutes prior to the conference call to ensure adequate time for
any software download that may be required to join the
webcast. The webcast will be archived on the Trust's website
following the call date.
About DRI Healthcare
Trust
DRI Healthcare Trust is managed by DRI Capital
Inc. ("DRI Capital"), the pioneer in global pharmaceutical royalty
monetization with a more than 30-year history of accelerating
innovation by providing capital to inventors, academic institutions
and biopharma companies. Since our founding in 1989, DRI Capital
has deployed more than US$2 billion,
acquiring more than 60 royalties on 40-plus drugs, including Eylea,
Spinraza, Zytiga, Remicade, Keytruda and Stelara. DRI Healthcare
Trust's units are listed and trade on the Toronto Stock Exchange in
Canadian dollars under the symbol "DHT.UN" and in U.S. dollars
under the symbol "DHT.U". To learn more, visit
drihealthcaretrust.com or follow us on LinkedIn.
Caution concerning forward-looking
statements
This news release may contain forward-looking
information within the meaning of applicable securities
legislation. Forward-looking information generally can be
identified by the use of forward-looking words such as "expect",
"continue", "anticipate", "intend", "aim", "plan", "believe",
"budget", "estimate", "forecast", "foresee", "close to", "target"
or negative versions thereof and similar expressions. Some of the
specific forward-looking information in this news release may
include, among other things, statements that our royalty
entitlement is expected to immediately contribute meaningful and
growing cash flows to our portfolio and that our royalty
entitlement in Omidria will end in 2030. Forward-looking
information is based on a number of assumptions and is subject to a
number of risks and uncertainties, many of which are beyond the
Trust's control that could cause actual results to differ
materially from those that are disclosed in or implied by such
forward-looking information. These risks and uncertainties include,
but are not limited to, those that are disclosed in the Trust's
most recent annual information form. The forward-looking
information in this news release is based on our assumptions
regarding the performance of our royalty interest in Omidria,
including with respect to worldwide sales. All forward-looking
information in this news release speaks as of the date of this news
release. The Trust does not undertake to update any such
forward-looking information whether as a result of new information,
future events or otherwise except as required by law. Additional
information about these assumptions and risks and uncertainties is
contained in the Trust's filings with securities regulators,
including its latest annual information form and Management's
Discussion and Analysis. These filings are also available at the
Trust's website at drihealthcaretrust.com.
SOURCE DRI Healthcare Trust