BioCryst bags $250M in a debt and royalty deal as the executive team preps a new drug launch for HAE
Three days after landing an FDA OK for their HAE drug berotralstat, BioCryst $BCRX now has some cash to see how far they can go in commercializing the therapy as Orladeyo.
The biotech reported Monday morning that they’ve inked a deal with Royalty Pharma that trades a chunk of their revenue from the drug for cash in hand. Royalty is paying out $125 million upfront, with a $200 million credit facility from Athyrium Capital Management that is being tapped for $125 million right off the bat. The rest will be held in reserve.
8.75% on direct annual net sales of ORLADEYO up to $350 million, 2.75% on sales between $350 million and $550 million, no royalty on sales over $550 million
Royalty Pharma chief Pablo Legorreta, who took the company public this year, gets 8.75% on direct annual net sales of Orladeyo up to $350 million, 2.75% on sales between $350 million and $550 million, with no royalties on sales over $550 million. There’s also a 1% royalty take for one of the biotech’s experimental drugs, if it makes it to the market.
Legorreta offered an endorsement with his money, calling their newly approved therapy “transformative.”
But no matter how much the executive crew at BioCryst have in the bank, marketing this drug won’t be easy.
BioCryst has an advantage marketing a new oral therapy for HAE, but it comes with markedly lower efficacy rates, which analysts believe could well keep patients going back to the current mainstays in the market.
Another limiting factor is price. The biotech priced their drug at $485,000, which is in line with the market leaders, and way ahead what some analysts had projected.
BioCryst also plans to devote a portion of the new money to “advance the development of BCX9930 into clinical trials in multiple complement-mediated diseases.”