DRI Healthcare Trust today announced that a wholly-owned subsidiary of DRI has acquired a royalty interest in Zejula from AnaptysBio, Inc. for a purchase price of US$35 million. An additional milestone payment of US$10 million will be paid should Zejula be approved by the U.S. Food and Drug Administration (“FDA”) for the treatment of endometrial cancer on or before December 31, 2025.
Zejula is approved by both the FDA and European Medicines Agency (“EMA”) as a treatment for both first-line and recurrent ovarian cancer. Additional indications in development include endometrial cancer, HER2-negative breast cancer, non-small cell lung cancer, metastatic castrate-sensitive prostate cancer, as well as metastatic castration-resistant prostate cancer, which was submitted for approval to the EMA in April 2022.
“We are excited to announce the addition of Zejula to our portfolio,” said Behzad Khosrowshahi, Chief Executive Officer of DRI Healthcare Trust. “Our expanding expertise in oncology products helped us identify a versatile product with multiple pipeline indications that present significant potential sales growth. This accretive transaction adds another long-term asset, providing immediate cash flows to the Trust with significant growth potential.”
The transaction entitles DRI to a net 0.5% royalty on worldwide net sales of Zejula by GSK plc (“GSK”). DRI will be entitled to receive quarterly royalty payments on a one-quarter lag based on sales beginning July 1, 2022 and will receive its first payment in Q4 2022. The royalty term is expected to continue for at least another 10 years worldwide.
Zejula is marketed by GSK worldwide excluding certain Asian territories, for all indications except for prostate cancer, which, pending regulatory approvals, will be marketed by Johnson & Johnson. Takeda Pharmaceutical Company Limited markets Zejula in Japan for all indications, as well as Taiwan and South Korea for all ex-prostate cancer indications. Zai Lab markets Zejula in China.
Caution concerning forward-looking statements
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking words such as “expect”, “continue”, “anticipate”, “intend”, “aim”, “plan”, “believe”, “budget”, “estimate”, “forecast”, “foresee”, “close to”, “target” or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements that we expect to collect our first royalty in Q4 2022 and for the entitlement to continue for at least another 10 years worldwide. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the Trust’s control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in the Trust’s most recent annual information form. The forward-looking information in this news release is based on our assumptions regarding the performance of our royalty interest in Zejula®, including with respect to worldwide sales. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust’s filings with securities regulators, including its latest annual information form and Management’s Discussion and Analysis.