NEW YORK—Covington represented REGENXBIO Inc. in the closure of a non-dilutive, limited-recourse royalty bond agreement of up to $250 million with Healthcare Royalty. This agreement monetizes select anticipated royalties and milestones, and provides both immediate and expected future, non-dilutive capital.
Under the terms of the agreement, HCRx will provide REGENXBIO an up to $250 million bond (principal amount) in exchange for rights, up to the principal amount and accrued interest, to anticipated royalty payments from sales of ZOLGENSMA® for Spinal Muscular Atrophy (SMA), as well as royalty and certain milestones payments from RGX-121 and RGX-111 for MPS II and MPS I, pursuant to a partnership with Nippon Shinyaku, and NAV® Technology Platform licensees Rocket Pharmaceuticals and Ultragenyx.
REGENXBIO is a biotechnology company on a mission to improve lives through the curative potential of gene therapy. Since its founding in 2009, REGENXBIO has pioneered the field of AAV gene therapy. REGENXBIO is advancing a late-stage pipeline of one-time treatments for rare and retinal diseases, including RGX-202 for the treatment of Duchenne; clemidsogene lanparvovec (RGX-121) for the treatment of MPS II and RGX-111 for the treatment of MPS I, both in partnership with Nippon Shinyaku; and surabgene lomparvovec (ABBV-RGX-314) for the treatment of wet AMD and diabetic retinopathy, in collaboration with AbbVie.
HealthCare Royalty is a leading royalty acquisition company focused on commercial or near-commercial biopharmaceutical products.
The Covington team included
Peter Schwartz,
Julian Wright,
Matthew Foster, and Benjamin Sovocool (finance),
Kurt Baca and
Lingyun Li (tax),
Kerry Burke, Matthew Franke, and
Angela Chen (securities and capital markets).
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