Covington Represents Royalty Pharma in $250M Royalty-Backed Note Financing

NEW YORK—Covington advised Royalty Pharma plc in its $250 million non-recourse royalty-backed note financing to Zymeworks Inc.

Repayment of the note will be secured by 30% of future royalties from the global sales of Ziihera, generated under collaboration agreements with partners Jazz and BeOne, equating to an approximately low to mid-single digit upward tiering royalty up to a pre-specified repayment limit. Royalty Pharma will cease receiving any such royalties when it receives cumulative payments of either 1.65x the note amount by December 31, 2033, or 1.925x the note amount at any time thereafter, at which time no further repayments will be owed with respect to the note.

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals, and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies.

The Covington team included Peter Schwartz, Julian Wright, Brendon Francis, and Javier Andujar (finance), and Steven Mossey (IP).