Royalty Pharma and Denali Therapeutics Announce $275 Million Royalty Funding Agreement

Core Insights - Royalty Pharma and Denali Therapeutics have entered into a $275 million synthetic royalty funding agreement based on future net sales of tividenofusp alfa, an investigational therapy for Hunter syndrome [1][4]. Company Overview - Royalty Pharma is the largest buyer of biopharmaceutical royalties and funds innovation across the biopharmaceutical industry, collaborating with various innovators [6]. - Denali Therapeutics is focused on developing biotherapeutics that can cross the blood-brain barrier, utilizing its proprietary TransportVehicle platform [7]. Product Information - Tividenofusp alfa is Denali's lead investigational therapy for mucopolysaccharidosis type II (Hunter syndrome) and is currently under FDA review for accelerated approval, with a target date of April 5, 2026 [2][3]. Transaction Details - The agreement includes an initial payment of $200 million from Royalty Pharma, with an additional $75 million contingent upon EMA approval by December 31, 2029 [4]. - Royalty Pharma will receive a 9.25% royalty on worldwide net sales of tividenofusp alfa, ceasing upon reaching a multiple of 3.0x or 2.5x if achieved by Q1 2039 [4]. Leadership Statements - Royalty Pharma's CEO expressed enthusiasm about the partnership, highlighting the innovative nature of tividenofusp alfa and its potential impact on patients with Hunter syndrome [3]. - Denali's CEO noted that the partnership with Royalty Pharma recognizes the value of tividenofusp alfa and will support broader development opportunities [3].