OMERS Buys Future Royalty Payments for Hepatitis C Virus Drug
Posted on 04/26/2023
Watertown, MA-based Enanta Pharmaceuticals, Inc. is a listed clinical-stage biotechnology company dedicated to creating small molecule drugs for viral infections. OMERS acquired 54.5% of Enanta’s future royalty payments from AbbVie Inc. on worldwide sales of MAVYRET/MAVIRET. The purchase price paid to Enanta was US$ 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. 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.
OMERS and its Life Sciences team seeks out royalty deals with drug companies. OMERS Life Sciences provides royalty financings and other non-dilutive solutions to biopharma companies and academic institutions.
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.
Keywords: Ontario Municipal Employees Retirement System.
