Press Release Details
RADIUS ANNOUNCES ROYALTY PURCHASE AGREEMENT WITH DRI HEALTHCARE TO SELL A PORTION OF ITS ROYALTY AND COMMERCIAL MILESTONE INTEREST IN ELACESTRANT FOR UP TO $140 MILLION
RADIUS RETAINS THE RIGHTS TO RECEIVE OVER $200 MILLION IN COMMERCIAL MILESTONES
Boston, Mass., August 14, 2023 – Radius Pharmaceuticals, Inc., a wholly owned subsidiary of Radius Health, Inc. (“Radius” or the “Company”), a specialty biopharmaceutical company focused on bone health, announced today that it has entered into a Royalty Purchase Agreement for a portion of Radius’s royalty and commercial milestone stream in elacestrant, the first and only treatment approved for ER+/HER2-, ESR1- mutated advanced or metastatic breast cancer, with DRI Healthcare Acquisitions LP (“DRI Healthcare”).
Under the terms of the Royalty Purchase Agreement, Radius will receive an upfront payment of $130 million, is eligible to receive an additional $10 million from DRI upon the occurrence of certain events, and retains over $200 million in potential commercial milestones payable from the Menarini Group. DRI Healthcare will receive a portion of the elacestrant royalty stream and rights to some of the initial commercial milestones from the Menarini Group, who entered into a global licensing agreement with Radius for the development and commercialization rights to elacestrant in July 2020. As part of the agreement with Menarini Group, Radius receives development and commercial milestone payments and a tiered royalty on global net sales. Radius intends to use the net proceeds of the transaction to support the growth of its bone health business, including TYMLOS® (abaloparatide), and other business development opportunities to help deliver life-enhancing therapies into the hands of patients.
Scott Briggs, Chief Executive Officer of Radius commented, “We are very pleased to have completed this important transaction, which will enable Radius to grow our bone health business and further invest in the commercialization of our core asset, TYMLOS®, as well as pursue business development opportunities to add meaningfully differentiated products with the ultimate goal of growing Radius and serving patients in need worldwide.”
“We are excited to add this asset to our growing royalty portiolio, as it fits with our investment criteria for a high-quality and long duration asset on a drug that meets a high unmet medical need” commented Behzad Khosrowshahi, Chief Executive Officer of DRI Healthcare. “We appreciate the partnership with the Radius team that allowed us to structure a transaction that provides upside for both parties.”
Elacestrant is a selective estrogen receptor degrader developed by Radius and approved in by the U.S. Food and Drug Administration in January 2023. Elacestrant, marketed as ORSERDU® in the U.S. by Stemline, a Menarini Group Company, is the first and only treatment approved for ER+/HER2-, ESR1- mutated advanced or metastatic breast cancer. The Committee for Medicinal Products for Human Use (CHMP) of the European Medicines Agency (EMA) adopted a positive opinion on the approval of ORSERDU® (elacestrant) monotherapy in July 2023.
J. Wood Capital Advisors acted as exclusive financial advisor to Radius and Ropes & Gray LLP acted as legal advisor for the transaction. Kirkland & Ellis LLP acted as legal advisor to Radius. Cravath, Swaine & Moore acted as legal advisor to DRI Healthcare.
Radius is a global biopharmaceutical company focused on addressing unmet medical needs in the areas of bone health and related areas. Radius’ lead product, TYMLOS® (abaloparatide) injection, was approved by the U.S. Food and Drug Administration in April 2017 for the treatment of postmenopausal women with osteoporosis at high risk for fracture, and in December 2022 for the treatment of men with osteoporosis at high risk for fracture.
Sara Goldberg: Lead, Communications
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