Royalty Pharma acquires royalty interest in ORLADEYO, BXX9930 from BioCryst

Royalty Pharma (RPRX), BioCryst Pharmaceuticals (BCRX) and Athyrium Capital Management announced transactions totaling $325 million in funding for BioCryst, with $250 million available at closing, to support the launch of ORLADEYO in hereditary angioedema and the development of its oral Factor D inhibitor, BCX9930. Royalty Pharma will provide BioCryst with an upfront cash payment of $125 million and will receive royalties of 8.75% on direct annual net sales of ORLADEYO up to $350 million, 2.75% on sales between $350 million and $550 million, no royalty on sales over $550 million, and a tiered percentage of sublicense revenue for ORLADEYO in certain territories. In addition, Royalty Pharma will receive a 1.0% royalty on global net sales of BCX9930, if approved. A fund managed by Athyrium Capital Management will provide BioCryst with a $200 million credit facility, of which BioCryst will draw $125 million at closing. The additional capital will be available in two tranches at BioCryst's option, upon reaching defined revenue milestones. The credit facility bears interest at LIBOR +8.25% and is interest-only for the entire five-year term, with all outstanding principal due at maturity. Additionally, BioCryst has the option to pay interest in-kind for the first eight quarters of the term, allowing the company to defer cash interest payments until after this period. The company will be subject to a minimum liquidity covenant of $15 million. There are no other financial covenants unless the third tranche is drawn by BioCryst. BioCryst plans to invest the combined proceeds to support the launch of ORLADEYO in the U.S. and Europe and to advance the development of BCX9930 into clinical trials in multiple complement mediated diseases. Additionally, BioCryst will repay its existing facility with MidCap Financial.