Roy­al­ty Phar­ma tops its record-set­ting $3.3B deal with CF Foun­da­tion, bet­ting $575M more on Ver­tex's drugs

Roy­al­ty Phar­ma’s $3.3 bil­lion deal with the Cys­tic Fi­bro­sis Foun­da­tion to pur­chase roy­al­ties on Ver­tex’s CF fran­chise was its largest roy­al­ty deal ever. But that didn’t buy it all: Per the arrange­ment, if Ver­tex’s an­nu­al world­wide net sales go above $5.8 bil­lion, 50% of the roy­al­ties go back to the CF Foun­da­tion.

Just as Ver­tex seems poised to reach that mark, Roy­al­ty Phar­ma CEO Pablo Legor­re­ta is putting down $575 mil­lion in cash to elim­i­nate that oblig­a­tion and chan­nel 100% of the cash stream in­to his shop.

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