– Proceeds from follow-on offering quickly
redeployed into value accretive transaction –
– DRI Healthcare's third significant royalty
acquisition within six weeks –
– Now expecting mid-teens total income CAGR
through 2025 and low single digit total income CAGR through 2030,
excluding any new transactions –
TORONTO, Aug. 14,
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 second royalty interest in the worldwide net sales of ORSERDU®.
DRI Healthcare entered into a purchase agreement with Radius
Pharmaceuticals, Inc., a wholly owned subsidiary of Radius Health,
Inc. ("Radius") for an upfront purchase price of US$130 million. This brings DRI Healthcare's
total deployment to US$766 million
since its IPO, with an additional US$69
million in potential milestone payments.
ORSERDU® is an oral, selective estrogen receptor degrader
("SERD") marketed in the United
States 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.
"We are excited to add another royalty to our portfolio and
increase our exposure to a high-quality and long-duration asset
like ORSERDU®," said Behzad
Khosrowshahi, Chief Executive Officer of the Trust. "The
confidence shown by our unitholders with the recently completed
follow-on equity offering enhanced our capital resources to
continue executing on value accretive transactions. The addition of
this royalty to the portfolio marks significant progress towards
our long-term growth objectives. We now anticipate mid-teens total
income CAGR through 2025 and low single digit total income CAGR
through 2030, providing an attractive and differentiated profile to
unitholders."
Speaking on behalf of the investment manager, Chief Investment
Officer Navin Jacob, commented
"ORSERDU® showcases significant clinical benefit compared to the
current standard of care for second line treatment of ER+/HER2-
metastatic breast cancer, which represents about 70% of breast
cancers. Feedback from physicians has been very strong on
ORSERDU®'s benefit to patients so much so that ORSERDU® has
performed better than our initial expectations at the time of our
transaction with Eisai (LINK). 2023 sales are now expected to reach
at least US$175 million. We are
excited to increase our exposure to this asset and we view this
deal as highly accretive to unitholders. We thank the Radius team
for working with us to complete this transaction."
The acquisition entitles DRI Healthcare to a net low to high
single digit tiered royalty on the worldwide net sales of the
ORSERDU®. DRI Healthcare is entitled to receive quarterly royalty
payments on a one-quarter lag based on sales beginning July 1, 2023, with its first payment expected to
be received in Q4 2023. ORSERDU® is patent protected until
January 2038. In addition to the
running royalties, DRI Healthcare is also entitled to receive
milestone payments of up to US$40
million on the achievement of sales performance thresholds.
Upon the occurrence of pre-specified events, DRI Healthcare is
obligated to pay a $10 million
milestone to Radius.
About
ORSERDU® (elacestrant)
ORSERDU® 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
ORSERDU® 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, ORSERDU® 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 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, the timing of royalty payments,
growth in total income, and anticipated sales of the products
underlying our royalties. Forward-looking information is based on a
number of assumptions, including, but not limited to: statements
regarding anticipated sales of the products underlying our
royalties are based on assumptions with respect to timing of
generic drugs entering the market, competitor drugs receiving
approval and entering the market, and regulatory measures under the
Inflation Reduction Act and are 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.
We are not providing any estimates with respect to total income
beyond 2030. 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