Pharmaceutical investor Royalty Pharma has announced its agreement to acquire a royalty stake in a groundbreaking gene therapy for the treatment of high-risk, non-muscle-invasive bladder cancer. The New York-based company will initially pay $300 million to Ferring Pharmaceuticals, a Swiss drugmaker, in exchange for a synthetic royalty on the net sales of Ferring’s Adstiladrin in the United States. This therapy received the approval of the U.S. Food and Drug Administration last year.
In addition to the initial payment, Royalty Pharma has agreed to make a potential milestone payment of $200 million. This payment is contingent on Ferring Pharmaceuticals reaching certain manufacturing goals by 2025. The transaction will not only provide Ferring Pharmaceuticals with the necessary capital but will also support the expansion of its manufacturing capacity, as well as the commercialization and further clinical development of Adstiladrin.
Upon completion of the manufacturing-related milestone, Royalty Pharma will possess a 5.1% percentage royalty on U.S. sales of Adstiladrin, which will subsequently increase to 8%. The company has also specified that the royalty agreement is estimated to remain in effect until the early to mid-2030s.