La Jolla grabs $125M royalty deal to back drug launch, fund R&D
The money is coming from HealthCare Royalty Partners, which gets a royalty rate that starts off with the 10% maximum and then scales down on revenue. Then at the beginning of 2022 and 2024 the rate can jump 4% at each turn if La Jolla’s sales team isn’t meeting goals.
Once HRP gets 180% of its investment back, the deal ends.
The drug — Giapreza (angiotensin II) — was handed a priority review after the agency looked over pivotal data for 321 patients. Added to current standards, it helped raise blood pressure, with 70% of the 163 patients tested with their drug achieving a pre-specified blood pressure response, compared to 23% of the 153 patients on a placebo. But regulators also noted that it can trigger dangerous blood clots as well. And analysts have raised concerns that the safety profile could blunt its commercial prospects.
“This transaction provides us with a strong financial position to support the commercial launch of Giapreza, while at the same time furthering the development of LJPC-401 and our other programs,” said La Jolla CEO George Tidmarsh.