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Royalty Pharma 8-K Report, Regulation FD Disclosure (Sep 27, 2024)

Reports
Regulation FD
Filing Date
Filed September 27, 2024
Period End
September 26, 2024
Security
RPRX
In the record · 2020–202610-K610-Q208-K80

RPRX filed 6 annual reports (10-K), 20 quarterly reports (10-Q) and 80 current reports (8-K) between 2020 and 2026.

  1. Material agreement8-K · Jul ’21Jul ’21
  2. Impairment8-K · Dec ’22Dec ’22
  3. Material agreement8-K · May ’26May ’26

01—Abstract

Summary

Summary of the 8-K filed September 27, 2024. Cited figures are marked; the original filing is the authoritative source.

On September 27, 2024, Royalty Pharma plc filed a Form 8-K under Item 7.01 (Regulation FD Disclosure) to disclose a regulatory milestone tied to its March 2023 royalty agreement with PureTech Health plc.

On September 26, 2024, Bristol Myers Squibb announced that the U.S. Food and Drug Administration approved a New Drug Application for KarXT (xanomeline-trospium) for the treatment of schizophrenia in adults. BMS intends to market the drug as Cobenfy. Under the 2023 agreement, Royalty Pharma paid $100 million upfront, with up to $400 milliona in additional payments contingent on certain regulatory and commercial milestones, in exchange for a 3% royalty on sales up to $2 billion annually, after which the royalty drops to 1%.

As a result of this approval, Royalty Pharma will pay PureTech a $25 millionb milestone payment. The filing is a short Regulation FD disclosure and includes standard forward-looking statement cautions. It does not provide Royalty Pharma's own financial results or updated guidance.

02—Key points

Key Highlights

  1. FDA approved BMS's New Drug Application for KarXT (xanomeline-trospium) for schizophrenia in adults, announced September 26, 2024; BMS intends to market it as Cobenfy.
  2. Royalty Pharma holds a 3% royalty on sales up to $2 billion annually, stepping down to 1% above that threshold, under its March 2023 agreement with PureTech Health plc.
  3. The original deal involved a $100 million upfront payment plus up to $400 million in additional payments tied to regulatory and commercial milestones.
  4. Royalty Pharma will pay PureTech a $25 million milestone payment triggered by this approval.
  5. The filing was made under Item 7.01 (Regulation FD Disclosure) and was signed by CFO Terrance Coyne.

03—Questions

Frequently Asked Questions

  1. What regulatory event triggered this disclosure?

    The U.S. FDA approved Bristol Myers Squibb's New Drug Application for KarXT (xanomeline-trospium) for the treatment of schizophrenia in adults, which BMS announced on September 26, 2024. BMS intends to market the drug as Cobenfy.

  2. How does Royalty Pharma benefit from this approval?

    Royalty Pharma holds a royalty on KarXT sales under its March 2023 agreement with PureTech Health plc: 3% on sales up to $2 billion annually, and 1% on sales above that threshold.

  3. Does this approval create a cost for Royalty Pharma?

    Yes. Royalty Pharma will pay PureTech a $25 million milestone payment as a result of the approval.

  4. How much has Royalty Pharma committed under the PureTech agreement?

    Royalty Pharma paid $100 million upfront and may pay up to $400 million in additional payments contingent on the achievement of certain regulatory and commercial milestones.

04—Continue

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