Ascendis Pharma Reaches $150 Mln Royalty Funding Agreement With Royalty Pharma; Stock Drops

(RTTNews) - Ascendis Pharma Bone Diseases A/S, a wholly-owned subsidiary of Ascendis Pharma A/S (ASND), has entered into a $150 million capped synthetic royalty funding agreement with Royalty Pharma plc (RPRX) based on U.S. net sales of YORVIPATH.

ASND closed Tuesday's regular trading at $134.68 down $3.77 or 2.72%. In the after-hours trading, the stock further dropped $24.18 or 17.95%.

"We are pleased to again partner with Royalty Pharma, a leading funder of innovation across the biopharma industry, as we launch YORVIPATH in the U.S. as the first and only FDA approved treatment of hypoparathyroidism in adults," said Jan Mikkelsen, Ascendis Pharma's President and Chief Executive Officer.

As per the terms of the agreement, Ascendis receives an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of YORVIPATH. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 2.0x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.