Royalty Pharma pays $3.3B for CFF royalties
The deal applies to royalties on Vertex Pharmaceuticals cystic fibrosis treatments owned by Cystic Fibrosis Foundation Therapeutics
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NEW YORK—Royalty Pharma has announced that it has acquired the royalties on Vertex Pharmaceuticals' cystic fibrosis treatments owned by Cystic Fibrosis Foundation Therapeutics, an affiliate of the Cystic Fibrosis Foundation, for a total of $3.3 billion in cash.
“This is a transformational moment for people with cystic fibrosis and the entire CF community,” Robert J. Beall, Ph.D., president and CEO of the Cystic Fibrosis Foundation, commented in a statement regarding the deal. “These new funds give us a tremendous opportunity to supercharge our efforts to develop lifesaving new therapies, ensure that the best possible care and resources are available for people with CF and pursue daring, new opportunities that one day may lead to a permanent, lifelong cure for this disease.”
"We are honored to work with the Cystic Fibrosis Foundation on this extraordinary royalty transaction,” Pablo Legorreta, founder and CEO at Royalty Pharma, added in a press release. “Our goal is to be the premier provider of innovative capital to enable the life sciences industry to accelerate development of important novel therapies. Furthermore, this transaction represents an important validation of the Foundation’s bold vision under Dr. Beall’s leadership to fund new drug development as part of its successful venture philanthropy model. These therapies are notable examples of fundamental research leading to breakthrough treatments that dramatically improve patient’s lives.”
Cystic fibrosis is a fatal genetic disease that affects the lungs and digestive system. Patients with cystic fibrosis have a defective copy of the cystic fibrosis transmembrane conductance regulator gene, which causes the body to produce an abnormally thick, sticky mucus that clogs the lungs, leading to infections, and “obstructs the pancreas and stops natural enzymes from helping the body break down food and absorb vital nutrients,” according to the Cystic Fibrosis Foundation. Approximately 70,000 individuals—children and adults—worldwide are afflicted with this disease.
“Treating and eradicating this complex, rare disease while continuing to meet the needs of those living with it requires a long-term commitment of time, effort and money. We still need the support of donors and volunteers to realize our goals. We plan to invest these funds in the wisest way possible: to help people with CF live healthier lives today and have more tomorrows,” said Beall.
Royalty Pharma brought on Bank of America Merrill Lynch as its financial advisor for this deal, with Goodwin Procter acting as its legal counsel. Cystic Fibrosis Foundation Therapeutics enlisted Morgan Stanley as its exclusive Structuring Agent, with Schaner & Lubitz serving as its legal advisor for the transaction.
