BRAIN Biotech AG Secures Up to €128.88 Million in Royalty Monetization Deal with Royalty Pharma for Investigational Drug Deucravacitinib
BRAIN Biotech AG, a clinical-stage biopharmaceutical company focused on the development of novel therapies for severe central nervous system (CNS) disorders, has entered into a royalty monetization agreement with Royalty Pharma, a leading global fund that invests in biopharmaceutical royalties.
Under the terms of the agreement, BRAIN Biotech will receive an upfront payment of €35 million and is eligible to receive up to €93.88 million in additional payments upon the achievement of certain development, regulatory, and commercial milestones. Royalty Pharma will receive tiered royalties on future net sales of Deucravacitinib, BRAIN Biotech's investigational drug for the treatment of severe alopecia areata.
Deucravacitinib is a novel, oral, selective tyrosine kinase 2 (TYK2) inhibitor that has shown promising efficacy and safety in clinical trials for the treatment of severe alopecia areata, an autoimmune disease that results in hair loss. The drug is currently in Phase 3 development, with topline data from the pivotal trial expected in the second half of 2023.
The agreement with Royalty Pharma provides BRAIN Biotech with significant non-dilutive capital to support the continued development and commercialization of Deucravacitinib. The upfront payment will be used to fund ongoing clinical trials, regulatory activities, and commercial preparation efforts. The potential milestone payments will provide additional financial flexibility to support the launch and growth of Deucravacitinib, if approved.
BRAIN Biotech CEO Dr. Ulrich Dauer said, "This agreement with Royalty Pharma is a major milestone for BRAIN Biotech and validates the potential of Deucravacitinib as a transformative treatment for severe alopecia areata. The upfront payment provides us with the financial resources to execute our clinical development and commercialization plans, while the potential milestone payments will provide additional flexibility to support the launch and growth of Deucravacitinib, if approved."
Royalty Pharma CEO Pablo Legorreta said, "We are excited to partner with BRAIN Biotech and support the development of Deucravacitinib, a promising new therapy for severe alopecia areata. We believe that Deucravacitinib has the potential to make a significant difference in the lives of patients suffering from this debilitating condition, and we look forward to working with BRAIN Biotech to bring this important treatment to market."
The agreement with Royalty Pharma is expected to close in the fourth quarter of 2022, subject to customary closing conditions.
About BRAIN Biotech AG
BRAIN Biotech AG is a clinical-stage biopharmaceutical company focused on the development of novel therapies for severe central nervous system (CNS) disorders. The company's lead drug candidate, Deucravacitinib, is a novel, oral, selective tyrosine kinase 2 (TYK2) inhibitor that is currently in Phase 3 development for the treatment of severe alopecia areata. BRAIN Biotech is headquartered in Munich, Germany, and has operations in the United States and Europe.
About Royalty Pharma
Royalty Pharma is a leading global fund that invests in biopharmaceutical royalties. The company's portfolio includes royalties on a diverse range of marketed and development-stage biopharmaceutical products. Royalty Pharma is headquartered in New York City and has offices in London, Dublin, and Zug, Switzerland.
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