– Transaction adds another innovative rare
disease therapy to the DHT portfolio –
– Novel deal structure offers
predictable annual cash flows as well as potential additional
annual sales-based milestones and a one-time contingent payment
–
TORONTO, Oct. 3, 2024
/CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the
"Trust") today announced that a wholly owned subsidiary of the
Trust has acquired a portion of Editas Medicine, Inc.'s ("Editas")
payment rights under a non-exclusive license to Vertex
Pharmaceuticals Incorporated ("Vertex") of Editas Medicine's Cas9
gene-editing technology for CASGEVY® (exagamglogene autotemcel) for
an upfront purchase price of US$57
million.
CASGEVY® is the first treatment approved by the U.S. Food and
Drug Administration ("FDA") to utilize CRISPR technology.
CASGEVY® was approved by the FDA in December
2023 for the treatment of sickle cell disease ("SCD") and in
January 2024 for the treatment of
transfusion-dependent beta thalassemia ("TDT"), and by the European
Medicines Agency for the treatment of both SCD and TDT in
February 2024. CASGEVY® is the only
approved gene-edited cell therapy for SCD and TDT. CASGEVY® is
marketed worldwide by Vertex.
SCD is an inherited blood disorder causing severe pain, organ
damage, and shortened lifespan due to misshapen red blood cells.
TDT is an inherited disorder that requires frequent blood
transfusions to manage anemia that leads to symptoms such
as fatigue, shortness of breath, and complications affecting
various organs. Both SCD and TDT significantly impact quality of
life and shorten life expectancy.
The transaction entitles the Trust to specific payments based on
a sublicensing agreement between Editas and Vertex. The payments
include a share of the annual license fees that Vertex pays to
Editas, which can range from US$5
million to US$40 million, and
includes certain sales-based annual license fee increases. Finally,
the Trust is entitled to receive a mid-double-digit percentage of
Editas Medicine's portion of a $50
million contingent payment for which Editas Medicine is
eligible under the Vertex license agreement. The first payment is
expected to be received in January
2025 and the term of the payment streams runs until
2034.
"We are excited to further diversify our portfolio into a new
therapeutic area," said Ali Hedayat,
Acting Chief Executive Officer of the Trust's investment manager.
"The structure of this transaction demonstrates our ability to work
with leading innovators to find flexible non-dilutive financing
options that enable them to reinvest in their business priorities
and continue to develop transformational therapies."
"The acquisition of the payment rights tied to CASGEVY®
aligns with our commitment to supporting transformative therapies
that can substantially improve patients' lives and reshape the
treatment landscape for these challenging conditions." said
Navin Jacob, Chief Investment
Officer of the investment manager. "We are grateful to the Editas
management team for working with us to create a solution that works
for both Editas and the Trust while ensuring a timely close."
For more information on Casgevy please visit:
www.casgevy.com
About Sickle Cell Disease (SCD)
SCD is a debilitating, progressive, life shortening genetic
disease. SCD patients report health-related quality of life scores
well below the general population and significant health care
resource utilization. SCD affects the red blood cells, which are
essential for carrying oxygen to all organs and tissues of the
body. SCD causes severe pain, organ damage and shortened life span
due to misshapen or "sickled" red blood cells. The clinical
hallmark of SCD is vaso-occlusive crises (VOCs), which are caused
by blockages of blood vessels by sickled red blood cells and result
in severe and debilitating pain that can happen anywhere in the
body at any time. SCD requires lifelong treatment and significant
use of health care resources, and ultimately results in reduced
life expectancy, decreased quality of life and reduced lifetime
earnings and productivity. Stem cell transplant from a matched
donor is a potentially curative option but is only available to a
small fraction of people living with SCD because of the lack of
available donors.
About Transfusion-Dependent Beta Thalassemia (TDT)
TDT is a serious, life-threatening genetic disease. TDT patients
report health-related quality of life scores below the general
population and significant health care resource utilization. TDT
requires frequent blood transfusions and iron chelation therapy
throughout a person's life. Due to anemia, patients living with TDT
may experience fatigue and shortness of breath, and infants may
develop failure to thrive, jaundice and feeding problems.
Complications of TDT can also include an enlarged spleen, liver
and/or heart, misshapen bones and delayed puberty. TDT requires
lifelong treatment and significant use of health care resources,
and ultimately results in reduced life expectancy, decreased
quality of life and reduced lifetime earnings and productivity.
Stem cell transplant from a matched donor is a potentially curative
option but is only available to a small fraction of people living
with TDT because of the lack of available donors.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI
Capital" or "DRI Healthcare") DRI Healthcare Trust's units are
listed and traded on the Toronto Stock Exchange in Canadian dollars
under the symbol "DHT.UN" and in US dollars under the symbol
"DHT.U". To learn more, visit 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 payments based
on licensing in connection with CASGEVY®. Forward-looking
information is subject to a number of assumptions, including, but
not limited to, statements regarding the terms and conditions of
our transaction being based on the transaction documentation, 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. No assurances can be
given that any of the events anticipated by the forward-looking
statements will transpire or occur, or if any of them do occur, the
actual results, performance or achievements of the Trust could
differ materially from the results expressed in, or implied by, any
forward-looking statements. The forward-looking information in this
news release is based on our assumptions regarding the performance
interest in CASGEVY®. 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