At a Glance
- Company: Royalty Pharma
- Location: New York, US
- Deal value: $240 million upfront plus up to $60 million in sales‑based milestones
- Focus area: Royalty stream on Evrysdi, an oral SMN2 splicing modifier for spinal muscular atrophy
- Next steps: Royalty Pharma to receive 8–16% tiered royalties on Evrysdi worldwide net sales starting Q1 2026
What happened?
Royalty Pharma has acquired the final portion of PTC Therapeutics’ royalty interest in Roche’s spinal muscular atrophy drug Evrysdi for $240 million upfront, with up to $60 million in additional sales‑based milestones. The transaction means Royalty Pharma will now own 100% of the tiered royalty on Evrysdi following a series of deals with PTC dating back to 2020.
Why does it matter?
Evrysdi is a key oral therapy for spinal muscular atrophy and has rapidly become a major revenue driver, generating about CHF 1.6 billion (approximately $1.9 billion) in 2024 sales, up 18% year‑on‑year at constant exchange rates. Analyst consensus projects Evrysdi could reach around CHF 2.3 billion (about $2.9 billion) in annual sales by 2030, giving Royalty Pharma long‑term exposure to a growing neuromuscular franchise.
Who’s behind it?
Royalty Pharma is a specialised investor that acquires biopharmaceutical royalty streams and co‑funds late‑stage clinical development, holding royalties on more than 35 commercial products and 20 pipeline assets. Evrysdi is developed and marketed by Roche, while the original royalty originated from PTC Therapeutics, which licensed its SMN2 splicing technology to Roche.
How was it achieved?
Under the deal, Royalty Pharma will receive a tiered royalty on Roche’s worldwide net sales of Evrysdi: 8% on sales up to $500 million, 11% between $500 million and $1 billion, 14% between $1 billion and $2 billion, and 16% on sales above $2 billion. The enhanced royalty economics will apply from the first quarter of 2026, based on Evrysdi product sales generated in the fourth quarter of 2025.
What’s next?
With the Evrysdi royalty fully consolidated, Royalty Pharma further diversifies and strengthens its cash‑flow base, supporting future royalty acquisitions and R&D funding partnerships. For PTC, the transaction provides additional non‑dilutive capital and completes the staged monetisation of its Evrysdi royalty, allowing redeployment into its own development portfolio.
What are people saying?
Royalty Pharma framed the deal as consistent with its strategy of backing category‑leading therapies with durable growth profiles, highlighting Evrysdi’s expanding global patient base of more than 21,000 treated individuals. Market commentary has underscored the attractiveness of securing 8–16% of a blockbuster asset’s top‑line sales, particularly in a rare disease area with high treatment persistence.