PTC Therapeutics Announces Deal with Royalty Pharma to Monetize Royalty Stream for Evrysdi

PTC Therapeutics (PTCT) saw a significant surge in its shares as it announced a deal with Royalty Pharma PLC (RPRX) to monetize a substantial portion of the royalty stream generated by its motor neuron disorder treatment, Evrysdi. This exciting development caused a 12% jump in PTC Therapeutics' shares during premarket trading on Thursday.

Deal Details

As part of the agreement, PTC Therapeutics will receive an impressive $1 billion in upfront cash in exchange for 67% of the outstanding royalties on Evrysdi. Additionally, PTC Therapeutics has the option to sell the remaining Evrysdi royalties for a potential sum of up to $500 million. The infusion of funds from this transaction will be utilized to retire Blackstone debt obligations and fund the company's planned operations.

About Evrysdi

Evrysdi is a groundbreaking treatment for spinal muscular atrophy, a genetic disease that impacts the nervous system and muscle movement. This innovative drug is the result of a collaborative effort between PTC Therapeutics, Roche Holding AG (RHHBY), and the SMA Foundation.

Retention of Milestone Payments

In addition to the substantial monetary gains from this deal, PTC Therapeutics will retain up to $250 million in remaining Evrysdi commercial sales milestone payments, further solidifying the company's financial outlook.

Stock Performance

Despite recent drops in its stock value, with a decline of 46% year-to-date, PTC Therapeutics is optimistic about its future trajectory. This deal with Royalty Pharma serves as a strategic move to boost growth and financial stability. In comparison, the S&P 500 index has seen a 12.4% gain over the same period. Meanwhile, Royalty Pharma's shares experienced a modest increase of 1.2% in premarket trading on Thursday, but have decreased by 30.5% year-to-date.

As PTC Therapeutics takes this leap forward in its pursuit of improving the lives of those affected by spinal muscular atrophy, the monetization of Evrysdi's royalty stream represents a momentous achievement and a promising future for the company.