– Patent-protected exclusivity and uncapped
deal structure offers attractive return profile –
– Acquisition generates substantial near-term
cash flows and long-term portfolio growth –
– DRI Healthcare expects flat to slightly
growing cash receipts through 2030 –
TORONTO, June 30,
2023 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN)
(TSX: DHT.U) (the "Trust"), a global leader in providing
financing to advance innovation in the life sciences industry, has
purchased a royalty interest in the worldwide net sales of Orserdu™
from Eisai Co., Ltd. ("Eisai") for US$85
million. This transaction brings DRI Healthcare's total
deployments since its IPO in February
2021 to US$570 million, with
an additional US$55 million in
potential milestones and options.
Orserdu™ is an oral, selective estrogen receptor degrader
("SERD") discovered by Eisai and marketed by Stemline Therapeutics,
Inc., a subsidiary of the Menarini Group. It is the first and only
approved targeted therapy used in the treatment of postmenopausal
women or adult men with ESR1-mutated ER+/HER2- metastatic breast
cancer, who have experienced disease progression despite prior
endocrine therapy. Orserdu™ was approved by the U.S. Food and
Drug Administration in January 2023
and is under review by the European Medicines Agency for potential
approval.
"Orserdu™ provides a safe, effective, and convenient treatment
for patients that have progressed on initial therapy," said
Behzad Khosrowshahi, Chief Executive
Officer of the Trust. "This transaction provides a tangible example
of how we can compound returns for our investors by redeploying our
cash receipts into new deals. Through this acquisition, we have
significantly enhanced the cash flow profile of our portfolio and
anticipate flat to slightly growing royalty cash receipts through
2030, without considering potential transactions generated by our
active pipeline."
Speaking on behalf of the investment manager (DRI Capital),
Chief Investment Officer Navin
Jacob, commented "We are excited to have exposure to
Orserdu™ with its strong first-in-class (oral SERD) position
and excellent risk/benefit profile for patients with ESR1
mutations. Physician feedback on Orserdu™ has been very
enthusiastic which is translating into strong initial uptake of the
product. It was a pleasure working the Eisai team and we are
grateful for their efforts in completing this transaction in record
time."
The acquisition entitles DRI Healthcare to a mid-single digit
tiered royalty on the worldwide net sales of the drug. DRI
Healthcare is entitled to receive quarterly royalty payments on a
one-quarter lag based on sales beginning April 1, 2023, with its first payment expected to
be received in Q3 2023. Orserdu™ is patent protected up to
January 2038. In addition to the
running royalties, the Trust is also entitled to receive milestones
based on the achievement of regulatory and sales performance
thresholds.
About
Orserdu™ (elacestrant)
OrserduTM is an oral SERD specifically designed for
postmenopausal women or adult men with advanced or metastatic
breast cancer who have experienced disease progression following at
least one line of endocrine therapy. Clinical studies show that
OrserduTM provides a statistically significant benefit
in terms of median progression-free survival (mPFS) when compared
to standard-of-care treatments. Notably, patients who have been
treated with CDK4/6 inhibitors for at least 12 months experienced
particularly strong benefits, with a mPFS of 8.6 months compared to
1.9 months with standard-of-care therapies. Unlike traditional
SERDs, OrserduTM offers the significant advantage of
being administered orally once daily, providing patients with a
more convenient and less painful treatment option compared to
intramuscularly administered SERDs and has a discontinuation rate
of less than 4%.
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 70 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
drihealthcare.com or follow us on LinkedIn. References in this
news release to "DRI Healthcare" refer to the Trust and its
subsidiaries, on a consolidated basis.
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 regarding our portfolio, royalty cash
receipts and the timing of royalty payments. 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 anticipated royalty terms
for products in our portfolio may be shorter than the period of
patent protection for the applicable product, depending on many
factors, including the entry of generic drugs into the marketplace
and competition, all of which are outside our control.
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 drihealthcare.com.
SOURCE DRI Healthcare Trust