Post by icemandios on Apr 25, 2023 19:47:09 GMT
Enanta Pharmaceuticals Announces Sale of a Portion of Global Royalties on MAVYRET® (U.S.)/MAVIRET® (ex-U.S.) (Glecaprevir/Pibrentasvir) to OMERS Life Sciences for $200 Million
Non-Dilutive and Strengthens Balance Sheet
Competitive Process Results in the Sale of 54.5% of the MAVYRET®/MAVIRET® Royalty Interest, Subject to a 1.42x Cap
Sale Proceeds to Fund Continuing Clinical Development Across Virology Pipeline
April 25, 2023 08:01 AM Eastern Daylight Time
WATERTOWN, Mass.--(BUSINESS WIRE)--Enanta Pharmaceuticals, Inc. (NASDAQ: ENTA), a clinical-stage biotechnology company dedicated to creating small molecule drugs for viral infections, today announced the sale to OMERS, one of Canada’s largest defined benefit pension plans, of 54.5% of Enanta’s future royalty payments from AbbVie Inc. on worldwide sales of MAVYRET®/MAVIRET®. The purchase price paid to Enanta was $200 million. OMERS right to receive royalty payments is based on net sales of the product beginning in July 2023 through June 2032, with total payments capped at 1.42 times the purchase price. Enanta retains 45.5% of all royalties until the cap is hit, at which point 100% of all further royalties revert to Enanta.
“We are pleased to partner with OMERS and its Life Sciences team to secure additional non-dilutive funding, which not only provides us with increased financial flexibility and retained economics, but also demonstrates the continued value of MAVYRET®/MAVIRET® and its significance for patients who continue to benefit from this therapy,” said Jay R. Luly, Ph.D., President and Chief Executive Officer of Enanta Pharmaceuticals. “As we execute on our programs, these funds enable us to continue to advance our robust pipeline of treatments for life-threatening viruses.”
“Enanta is a leader in small molecule drug discovery as evidenced by the successful development and commercialization of MAVYRET®/MAVIRET® in collaboration with AbbVie,” said Rob Missere, Managing Director & Head of OMERS Life Sciences. “We are pleased to invest in future sales of MAVYRET®/MAVIRET®, an important cure for chronic hepatitis C virus infection. This deal furthers our mandate to deliver an attractive source of long-term returns for our more than 560,000 members.”
MAVYRET®/MAVIRET® is a fixed-dose combination of glecaprevir, an NS3/4A protease inhibitor, and pibrentasvir, an NS5A inhibitor, indicated for the treatment of chronic hepatitis C virus (HCV) infection. Glecaprevir was discovered by Enanta under a collaboration between AbbVie and Enanta to discover and develop protease inhibitor treatments for chronic HCV infection. MAVYRET®/MAVIRET® was launched globally beginning in 2017.
Advisors
Foley Hoag LLP acted as legal advisor, and Elmore Patent Law Group, PC acted as patent counsel, to Enanta Pharmaceuticals, Inc. Davies Ward Phillips & Vineberg LLP acted as legal advisor, and Ballard Spahr LLP acted as patent counsel, to OMERS.
About Enanta Pharmaceuticals, Inc.
Enanta is using its robust, chemistry-driven approach and drug discovery capabilities to become a leader in the discovery and development of small molecule drugs for the treatment of viral infections. Enanta’s research and development programs include clinical candidates for the following disease targets: respiratory syncytial virus (RSV), SARS-CoV-2 (COVID-19) and hepatitis B virus (HBV). Enanta is also conducting research on a single agent targeting both RSV and human metapneumovirus (hMPV).
Glecaprevir, a protease inhibitor discovered by Enanta, is part of one of the leading treatment regimens for curing chronic HCV infection and is sold by AbbVie in numerous countries under the tradenames MAVYRET® (U.S.) and MAVIRET® (ex-U.S.) (glecaprevir/pibrentasvir). Please visit www.enanta.com for more information.
About OMERS Life Sciences and OMERS
OMERS Life Sciences provides royalty financings and other non-dilutive solutions to biopharma companies and academic institutions, supporting their efforts to address unmet medical needs and improve the quality of life of patients around the world.
From Endpoint News:
Non-Dilutive and Strengthens Balance Sheet
Competitive Process Results in the Sale of 54.5% of the MAVYRET®/MAVIRET® Royalty Interest, Subject to a 1.42x Cap
Sale Proceeds to Fund Continuing Clinical Development Across Virology Pipeline
April 25, 2023 08:01 AM Eastern Daylight Time
WATERTOWN, Mass.--(BUSINESS WIRE)--Enanta Pharmaceuticals, Inc. (NASDAQ: ENTA), a clinical-stage biotechnology company dedicated to creating small molecule drugs for viral infections, today announced the sale to OMERS, one of Canada’s largest defined benefit pension plans, of 54.5% of Enanta’s future royalty payments from AbbVie Inc. on worldwide sales of MAVYRET®/MAVIRET®. The purchase price paid to Enanta was $200 million. OMERS right to receive royalty payments is based on net sales of the product beginning in July 2023 through June 2032, with total payments capped at 1.42 times the purchase price. Enanta retains 45.5% of all royalties until the cap is hit, at which point 100% of all further royalties revert to Enanta.
“We are pleased to invest in future sales of MAVYRET®/MAVIRET®, an important cure for chronic hepatitis C virus infection. This deal furthers our mandate to deliver an attractive source of long-term returns for our more than 560,000 members.”
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“We are pleased to partner with OMERS and its Life Sciences team to secure additional non-dilutive funding, which not only provides us with increased financial flexibility and retained economics, but also demonstrates the continued value of MAVYRET®/MAVIRET® and its significance for patients who continue to benefit from this therapy,” said Jay R. Luly, Ph.D., President and Chief Executive Officer of Enanta Pharmaceuticals. “As we execute on our programs, these funds enable us to continue to advance our robust pipeline of treatments for life-threatening viruses.”
“Enanta is a leader in small molecule drug discovery as evidenced by the successful development and commercialization of MAVYRET®/MAVIRET® in collaboration with AbbVie,” said Rob Missere, Managing Director & Head of OMERS Life Sciences. “We are pleased to invest in future sales of MAVYRET®/MAVIRET®, an important cure for chronic hepatitis C virus infection. This deal furthers our mandate to deliver an attractive source of long-term returns for our more than 560,000 members.”
MAVYRET®/MAVIRET® is a fixed-dose combination of glecaprevir, an NS3/4A protease inhibitor, and pibrentasvir, an NS5A inhibitor, indicated for the treatment of chronic hepatitis C virus (HCV) infection. Glecaprevir was discovered by Enanta under a collaboration between AbbVie and Enanta to discover and develop protease inhibitor treatments for chronic HCV infection. MAVYRET®/MAVIRET® was launched globally beginning in 2017.
Advisors
Foley Hoag LLP acted as legal advisor, and Elmore Patent Law Group, PC acted as patent counsel, to Enanta Pharmaceuticals, Inc. Davies Ward Phillips & Vineberg LLP acted as legal advisor, and Ballard Spahr LLP acted as patent counsel, to OMERS.
About Enanta Pharmaceuticals, Inc.
Enanta is using its robust, chemistry-driven approach and drug discovery capabilities to become a leader in the discovery and development of small molecule drugs for the treatment of viral infections. Enanta’s research and development programs include clinical candidates for the following disease targets: respiratory syncytial virus (RSV), SARS-CoV-2 (COVID-19) and hepatitis B virus (HBV). Enanta is also conducting research on a single agent targeting both RSV and human metapneumovirus (hMPV).
Glecaprevir, a protease inhibitor discovered by Enanta, is part of one of the leading treatment regimens for curing chronic HCV infection and is sold by AbbVie in numerous countries under the tradenames MAVYRET® (U.S.) and MAVIRET® (ex-U.S.) (glecaprevir/pibrentasvir). Please visit www.enanta.com for more information.
About OMERS Life Sciences and OMERS
OMERS Life Sciences provides royalty financings and other non-dilutive solutions to biopharma companies and academic institutions, supporting their efforts to address unmet medical needs and improve the quality of life of patients around the world.
OMERS is a jointly sponsored, defined benefit pension plan, with 1,000 participating employers ranging from large cities to local agencies, and over half a million active, deferred and retired members. Its members include union and non-union employees of municipalities, school boards, local boards, transit systems, electrical utilities, emergency services and children’s aid societies across Ontario. OMERS teams work in Toronto, London, New York, Amsterdam, Luxembourg, Singapore, Sydney and other major cities across North America and Europe – serving members and employers, and originating and managing a diversified portfolio of high-quality investments in public markets, private equity, infrastructure and real estate.
From Endpoint News:
April 25, 2023 02:27 PM EDT
Pharma
Enanta sells off over 50% of royalty payments from Mavyret in exchange for $200M
Katherine Lewin
News Reporter
Enanta Pharmaceuticals is selling off royalty payments from its AbbVie-partnered drug Mavyret, its biggest revenue driver, to a Canadian pension plan for $200 million.
Enanta has sold 54.5% of its future worldwide Mavyret royalty payments from AbbVie to OMERS, a Canadian defined benefit pension plan, in exchange for $200 million beginning in July 2023 until June 2032. The royalty payments are based on net sales of Mavyret during that time period, with total payments capped at 1.42 times the purchase price, or $284 million.
But Enanta will still hold onto 45.5% of royalties until OMERS hits the cap. After that, 100% of all royalties will go back to Enanta.
Mavyret is a combo of glecaprevir and pibrentasvir for the treatment of chronic hepatitis C virus (HCV) infections. Enanta discovered glecaprevir in a collaboration with AbbVie in a bid to develop protease inhibitors for HCV. It launched globally in 2017.
The drug is Enanta’s main profit driver. According to the company’s latest financial filing, total revenue for the three months that ended on Dec. 31 was $32.6 million — $22.6 million of which came from royalties for global net sales of Mavyret. AbbVie posted $1.5 billion in Mavyret sales last year.
Jay Luly, president and CEO of Enanta, said in a statement that the additional non-dilutive funding will give the company “increased financial flexibility and retained economics.”
A representative for Enanta told Endpoints News that the money will allow the company to “fund the continuing clinical development across our virology pipeline of treatments.” There are eight candidates in the pipeline, with virology studies for HBV, RSV, dual hMPV/RSV and Covid-19.
The two candidates farthest along in its pipeline are EDP-235, a protease inhibitor for Covid-19 in a Phase II trial that got a fast track designation from the FDA, and an n-protein inhibitor candidate dubbed EDP-938 for RSV, also in Phase II trials.
In EDP-235’s SPRINT trial, the inhibitor is designed as an oral, once-daily treatment for Covid-19 infections. A data readout is expected next month.
Enanta is also embroiled in a lawsuit against Pfizer over EDP-235, which is still ongoing, a company representative confirmed. Last year, Enanta sued Pfizer over claims that Pfizer’s nirmatrelvir, part of the drug Paxlovid, violates Enanta’s patent. Enanta said it does not want to halt the sale, distribution or production of Paxlovid, but it does want to be reimbursed with “fair compensation.”
Pharma
Enanta sells off over 50% of royalty payments from Mavyret in exchange for $200M
Katherine Lewin
News Reporter
Enanta Pharmaceuticals is selling off royalty payments from its AbbVie-partnered drug Mavyret, its biggest revenue driver, to a Canadian pension plan for $200 million.
Enanta has sold 54.5% of its future worldwide Mavyret royalty payments from AbbVie to OMERS, a Canadian defined benefit pension plan, in exchange for $200 million beginning in July 2023 until June 2032. The royalty payments are based on net sales of Mavyret during that time period, with total payments capped at 1.42 times the purchase price, or $284 million.
But Enanta will still hold onto 45.5% of royalties until OMERS hits the cap. After that, 100% of all royalties will go back to Enanta.
Mavyret is a combo of glecaprevir and pibrentasvir for the treatment of chronic hepatitis C virus (HCV) infections. Enanta discovered glecaprevir in a collaboration with AbbVie in a bid to develop protease inhibitors for HCV. It launched globally in 2017.
The drug is Enanta’s main profit driver. According to the company’s latest financial filing, total revenue for the three months that ended on Dec. 31 was $32.6 million — $22.6 million of which came from royalties for global net sales of Mavyret. AbbVie posted $1.5 billion in Mavyret sales last year.
Jay Luly, president and CEO of Enanta, said in a statement that the additional non-dilutive funding will give the company “increased financial flexibility and retained economics.”
A representative for Enanta told Endpoints News that the money will allow the company to “fund the continuing clinical development across our virology pipeline of treatments.” There are eight candidates in the pipeline, with virology studies for HBV, RSV, dual hMPV/RSV and Covid-19.
The two candidates farthest along in its pipeline are EDP-235, a protease inhibitor for Covid-19 in a Phase II trial that got a fast track designation from the FDA, and an n-protein inhibitor candidate dubbed EDP-938 for RSV, also in Phase II trials.
In EDP-235’s SPRINT trial, the inhibitor is designed as an oral, once-daily treatment for Covid-19 infections. A data readout is expected next month.
Enanta is also embroiled in a lawsuit against Pfizer over EDP-235, which is still ongoing, a company representative confirmed. Last year, Enanta sued Pfizer over claims that Pfizer’s nirmatrelvir, part of the drug Paxlovid, violates Enanta’s patent. Enanta said it does not want to halt the sale, distribution or production of Paxlovid, but it does want to be reimbursed with “fair compensation.”
