Royalty Pharma Acquires Royalty Rights to COPD/Asthma Treatment for $1.6 Billion

Royalty Pharma is paying $1.6 billion for the royalty rights to Trelegy Ellipta, a treatment for COPD and asthma.

Royalty Pharma, a company specializing in acquiring pharmaceutical royalties, announced on July 13, 2022 that it would acquire a royalty interest in Trelegy Ellipta (Trelegy) (fluticasone furoate, umeclidinium, and vilanterol) from Theravance BioPharma, a pharmaceutical company specializing in treatments for lung diseases, and Innovia, a medical devices company, in a deal worth up to $1.61 billion. Royalty will pay $1.31 in cash up front, while an additional $300 million is contingent on certain sales milestones. The deal is expected to formally close within ten business days of the announcement.

Marketed by GSK, Trelegy Ellipta is a combination of fluticasone furoate, an inhaled corticosteroid, and two bronchodilators—umeclidinium, a long-acting muscarinic antagonist, and vilanterol, a long-acting β2 adrenoreceptor agonist—in a single delivery device. It is administered once-daily for the maintenance treatment of chronic obstructive pulmonary disease (COPD) and asthma in patients 18 and older.

Royalty is acquiring all equity interests in Theravance Respiratory Company, which is entitled to an upward tiering royalty of 6.5% to 10% on annual worldwide sales of the therapy, payable by GSK. According to a company press release, the therapy generated sales of $1.68 billion in 2021, an increase of 57% at constant exchange rates versus the prior year.

“We are excited to acquire this royalty from Theravance and Innoviva,” said Pablo Legorreta, founder and CEO, Royalty Pharma, in the press release. Trelegy is the leading triple combination therapy for COPD and asthma and adds another important, rapidly growing blockbuster therapy to our royalty portfolio. Additionally, providing capital at scale positions Theravance and Innoviva to pursue important strategic initiatives.”

Source: Royalty Pharma