- Royalty Pharma, which calls itself the largest buyer of biopharmaceutical royalties, said Wednesday it’s undertaking a two-pronged transaction to acquire royalty rights to GSK’s blockbuster respiratory drug Trelegy Ellipta.
- The biggest part of the deal is a $1.1 billion payment to Theravance Biopharma, which holds 85% of the Trelegy royalty rights through Theravance Respiratory LLC. Royalty is buying up the rest of the rights by paying Innoviva $282 million.
- Theravance said it will use the cash to eliminate outstanding debt, return capital to shareholders and focus on its pipeline. As part of the agreement with Royalty, Theravance will receive a $25 million investment in its experimental drug ampreloxetine, which is being developed to treat neurogenic orthostatic hypotension.