Royalty Pharma pivots to Spinraza royalties to recoup its $500 million investment after the Phase 3 failure of Novartis's cardiovascular drug, pelacarsen.
Royalty Pharma's investment in Ionis includes downside protection through Spinraza royalties, limiting losses despite pelacarsen Phase 3 failure.
Ionis' pelacarsen royalty stream is now much less valuable after the Phase 3 failure, though the upfront payment mitigates impact.
Novartis' pelacarsen failed to meet the primary cardiovascular endpoint in Phase 3, a moderate setback for the pipeline.
Royalty Pharma faces a setback as Novartis's pelacarsen fails its primary cardiovascular endpoint in a Phase 3 trial. The company expects to mitigate financial impact through its existing royalty stream from Ionis Pharmaceuticals' Spinraza, aiming to recover its $500 million investment despite the loss of potential pelacarsen upside.
The company relies on a structured agreement with Ionis Pharmaceuticals that includes a share of Spinraza royalties, which are expected to cover the original $500 million funding plus a modest return.