Royalty Pharma plc (Nasdaq: RPRX) and Syndax Pharmaceuticals (Nasdaq: SNDX) have announced a $350 million synthetic royalty funding agreement, tied to the U.S. net sales of Niktimvo (axatilimab-csfr).
“We are thrilled to partner with Syndax, a forward-thinking oncology company with a promising pipeline,” stated Pablo Legorreta, founder and CEO of Royalty Pharma. “Niktimvo represents a first-in-class treatment that has the potential to address the severe complications associated with chronic graft-versus-host disease (GVHD), where there is a significant unmet need for new therapies. We look forward to Syndax and their collaborator Incyte launching Niktimvo soon to benefit GVHD patients.”
Michael A. Metzger, CEO of Syndax, added, “We anticipate that this transaction will support our path to profitability while allowing us to share in the profits from Niktimvo and maintain the upside from its future growth. This substantial capital infusion positions us well to successfully launch two first-in-class medicines and explore additional indications.”
Under the agreement’s terms, Syndax will receive an upfront payment of $350 million in exchange for a 13.8% royalty on the U.S. net sales of Niktimvo. Royalty payments to Royalty Pharma will end once a multiple of 2.35x is reached.
Advisors
Gibson, Dunn & Crutcher LLP and Dechert LLP served as legal advisors to Royalty Pharma, while Goldman Sachs & Co. LLC acted as the exclusive financial advisor and Cooley LLP provided legal counsel to Syndax for the transaction.
