– Transaction adds another innovative rare
disease therapy to DRI's expanding portfolio –
– Deal structure offers risk sharing with
milestone payments for positive performance –
– Long-term patent-protected exclusivity
extends DRI's cash flows –
TORONTO, Nov. 28,
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
worldwide sales of Xenpozyme (olipudase alfa) for a purchase price
of US$30 million. Additional
performance-based milestones of up to US$26.5 million may be paid should the sales of
the drug outperform expectations.
Xenpozyme is the only product developed and approved for the
treatment of non-central nervous system manifestations of acid
sphingomyelinase deficiency ("ASMD"), also known as Niemann-Pick
disease, in pediatric and adult patients. Xenpozyme was approved in
Japan in March 2022, by the European Commission in
June 2022, and by the U.S. Food and
Drug Administration ("FDA") in August
2022. There are no other products currently known to be in
development for the treatment of ASMD. Xenpozyme is marketed
worldwide by Sanofi S.A. ("Sanofi"). ASMD is an extremely rare,
progressive genetic disease with significant morbidity and
mortality, especially among infants and children. Signs and
symptoms of ASMD may include enlarged spleen or liver, difficulty
breathing, lung infections, and unusual bruising or bleeding, among
other disease manifestations. Current management of the disease
includes palliative and supportive care to manage the symptoms.
Xenpozyme is an enzyme replacement therapy designed to replace
deficient or defective acid sphingomyelinase (ASM), an enzyme that
allows for the breakdown of the lipid sphingomyelin. In individuals
with ASMD, the insufficient amount of the ASM enzyme means
sphingomyelin is poorly metabolized, potentially leading to
lifelong accumulation of sphingomyelin and damage to multiple
organs.
"Xenpozyme is a product that provides ASMD patients and their
families with a disease-modifying therapy where none previously
existed. The drug represents a transformational shift in therapies
available to patients who suffer from ASMD" said Behzad Khosrowshahi, Chief Executive Officer of
DRI Healthcare Trust. "The addition of royalties on the sales of
Xenpozyme is well aligned with DRI's goal of seeking accretive,
long-term royalties that continue to diversify the Trust's exposure
to the biopharmaceutical industry."
The transaction entitles DRI to royalties equal to approximately
one percent of worldwide net sales of Xenpozyme. DRI is entitled to
receive semi-annual royalty payments in respect of net sales of
Xenpozyme commencing from the transaction date on a two-quarter lag
from the respective half-year period. For sales made in the first
and second quarters of a year, DRI expects to receive its royalty
payment in the fourth quarter of that year. For sales made in the
third and fourth quarters of the year, DRI expects to receive its
royalty payment in the second quarter of the following year. DRI
expects to receive royalties on net sales of Xenpozyme for
approximately 15 years.
About Xenpozyme (olipudase
alfa)
Xenpozyme addresses a significant unmet need in ASMD patients.
It is an intravenously infused recombinant human acid
sphingomyelinase enzyme intended to directly replace ASM expression
in patients with ASMD, thereby improving clinical manifestations of
the disease.
About Acid Sphingomyelinase
Deficiency
ASMD is a rare, progressive, and potentially life-threatening
lysosomal storage disorder. ASMD is a disease spectrum and patients
are characterized by neurological (Type A) and non-neurological
(Type B) manifestations. The estimated prevalence of ASMD is widely
variable and is approximately 2,000 patients worldwide. Patients
with ASMD Type B have varying degrees of non-neurologic symptoms
such as hepatosplenomegaly, atherogenic lipid profile, interstitial
lung disease with progressive impairment of pulmonary function and
hematologic abnormalities including cytopenias. Other common
clinical manifestations include liver dysfunction, heart disease,
skeletal abnormalities, and growth delays. Some patients with ASMD
who survive beyond early childhood have intermediate phenotypes
(ASMD Type A/B) characterized by combinations of non-neurologic and
mild to severe neurologic symptoms. Common symptoms include
shortness of breath, joint or limb pain, abdominal pain, bleeding,
and bruising. The disease often leads to chronic fatigue, limited
physical or social activity and difficulties in performing daily
activities or work. Many patients die before or in early adulthood,
often from pneumonia, respiratory failure, or liver failure.
Available treatments are limited to symptom management and
supportive care.
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$2.5
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 we expect to receive royalties on net
sales of Xenpozyme for approximately 15 years. 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 Xenpozyme,
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