– Transaction adds a ground-breaking type 1
diabetes therapy to DRI's expanding portfolio –
– Excluding any new transactions, DRI now
expects 2030 cash receipts to be at least as high as 2022 cash
receipts –
– Extends DRI's overall portfolio duration to
over 10 years –
TORONTO, March 8,
2023 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX:
DHT.U) ("DRI" or "the Trust") today announced that a wholly-owned
subsidiary of DRI has agreed to purchase MacroGenics, Inc.'s
("MacroGenics") royalty interest in the worldwide sales of TZIELD
(teplizumab-mzwv) for an up-front purchase price of US$100 million. DRI expects to fund the
transaction through cash raised in its recently announced
US$95 million private placement of
preferred securities.
TZIELD is a biologic drug indicated to delay the onset of
stage 3 type 1 diabetes in adults and pediatric patients aged 8
years and older that have stage 2 (at-risk) type 1 diabetes. It was
approved by the U.S. Food and Drug Administration in November 2022. TZIELD is currently the only
approved preventative treatment indicated for stage 2 type 1
diabetes patients and is marketed by Provention Bio, Inc.
("Provention") and Sanofi S.A. through a co-promotion agreement.
TZIELD is also being investigated in a phase III study of newly
diagnosed stage 3 type 1 diabetes patients.
"TZIELD represents a meaningful step forward in the treatment of
type 1 diabetes, a disease that affects millions worldwide," said
Behzad Khosrowshahi, Chief Executive
Officer of DRI Healthcare Trust. "With the completion of this deal,
and without assuming additional new deals in the future, we believe
that our 2030 cash receipts will be at least as high as our 2022
cash receipts and calculate that our overall portfolio duration now
sits at over 10 years."
The transaction entitles DRI to a single digit royalty on
Provention's worldwide net sales of TZIELD. Upon the
occurrence of certain pre-specified events that may occur between
mid-2023 and 2028 tied to the successful advancement of TZIELD for
the treatment of newly diagnosed or recent-onset type 1 diabetes,
DRI will pay MacroGenics an additional milestone payment of up to
US$50 million. A second
milestone payment of US$50 million
may be paid in the event TZIELD sales exceed certain
thresholds.
DRI will be entitled to receive quarterly royalty payments on a
one-quarter lag based on TZIELD sales beginning January 1, 2023. TZIELD is protected by
patent and regulatory exclusivities for 12 years from its first
commercial sale.
The transaction is expected to close within five business
days.
About TZIELD (teplizumab-mzwv)
TZIELD is an IV-administered Fc receptor–nonbinding anti-CD3
monoclonal antibody that binds to T-cell receptor CD3 causing a
partially agonistic effect and deactivation of pancreatic beta cell
autoreactive T lymphocytes. It works by modulating the body's
immune system to stop attacking its own pancreatic beta cells.
Clinical trial data demonstrated the treatment effect of TZIELD in
delaying type 1 diabetes ("T1D") diagnosis in at-risk relatives of
T1D patients for a median time of approximately 2 years. Staging
T1D prior to the symptomatic form provides opportunities to screen
for at-risk individuals and delay or prevent the onset of clinical
symptoms. TZIELD is the first treatment to delay the onset of stage
3 T1D for stage 2 T1D patients and is also being developed to treat
newly diagnosed stage 3 T1D. The phase 3 PROTECT trial is ongoing
with data expected in mid-2023.
About Type 1 Diabetes
T1D is a chronic autoimmune disease that leads to lifelong
insulin therapy due to hyperglycemia arising from immune-mediated
loss of functional pancreatic β-cells caused by genetic,
immunological, and environmental factors. T1D is a burdensome
disease that impacts healthcare systems and patients, as well as
their caretakers – especially given the significant number of
adolescent or pediatric patients. The economic cost of T1D in the
U.S. was estimated to be US$27.8
billion in 2014, and other studies suggest the lifetime
economic burden is greater than type 2 diabetes because of higher
medical costs to treat long-term complications. Despite
advancements made in insulin therapies, many T1D patients do not
achieve sufficient glycemic control and can experience life-long
microvascular (e.g., retinopathy, nephropathy, neuropathy) and
macrovascular (e.g., cardiovascular disease, peripheral artery
disease) complications. Insulin therapy also brings its own set of
complications (e.g., hypoglycemia and weight gain) that further
burdens patients and their caretakers.
There are no curative therapies for T1D. Intensive insulin
therapy combined with frequent glucose monitoring is the
predominant approach to manage symptomatic T1D. Advances in
insulin-based therapies, monitoring systems, and drug delivery
devices (insulin pumps) have improved glycemic control and reduced
the long-term risks of diabetic complications. Other important
interventions include nutrition and physical activity.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI
Capital"), the pioneer in global pharmaceutical royalty
monetization with a more than 30-year history of accelerating
innovation by providing capital to inventors, academic institutions
and biopharma companies. Since its founding in 1989, DRI Capital
has deployed more than US$2.5
billion, acquiring more than 60 royalties on 40-plus drugs,
including Eylea, Spinraza, Zytiga, Remicade, Keytruda and Stelara.
DRI Healthcare Trust's units are listed and trade on the Toronto
Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in
U.S. dollars under the symbol "DHT.U". To learn more, visit
drihealthcare.com or follow us on LinkedIn.
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 DRI expects to receive its first
royalty payment on sales of TZIELD in Q2 2023, that TZIELD is
protected by patent and regulatory exclusivities for 12 years from
its first commercial sale, and statements regarding DRI's future
cash receipts and overall portfolio duration. 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. No assurance can be given that
these are all the factors that could cause actual results to vary
materially from the forward-looking statements in this press
release. You should not put undue reliance on forward-looking
statements. No assurances can be given that any of the events
anticipated by the forward-looking statements will transpire or
occur, or if any of them do occur, the actual results, performance
or achievements of the Trust could differ materially from the
results expressed in, or implied by, any forward-looking
statements. The forward-looking information in this news release is
based on our assumptions regarding the performance of our royalty
interest in TZIELD, 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. These filings are also
available at the Trust's website at drihealthcare.com.
SOURCE DRI Healthcare Trust