WASHINGTON (dpa-AFX) - Zymeworks Inc. (ZYME), a clinical-stage biopharmaceutical company, on Monday entered into a $250 million royalty funding agreement with Royalty Pharma plc (RPRX), a buyer of biopharmaceutical royalties, through a non-recourse royalty-backed note secured by a portion of future royalties from Ziihera or zanidatamab-hrii.
The funding is backed by 30% of worldwide tiered royalties owed to Zymeworks by Jazz Pharmaceuticals and BeOne Medicines.
Under the terms, repayment will be made from 30% of global royalties on Ziihera, equating to a low- to mid-single digit upward tiering royalty.
Royalty Pharma will receive cumulative payments of 1.65 times the note amount by December 31, 2033, or 1.925 times the note amount at any time thereafter, after which no further payments will be due.
Royalty payments to Royalty Pharma will cease once the repayment cap is reached.
Zymeworks will retain 70% of royalties during the repayment period, with full royalty rights reverting after the note is satisfied.
Regulatory and commercial milestone payments under agreements with Jazz and BeOne, including up to $1.5 billion in potential remaining milestone payments, will be fully retained by Zymeworks.
In the pre-market trading, Royalty Pharma is 1.75% lesser at $45.40 on the Nasdaq.
On Friday, Zymeworks closed trading 2.18% lesser at $23.29 on the Nasdaq.
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