Zealand Pharma sells Rusfertide Royalty Rights to Royalty Pharma in US$100M deal
The agreement gives Zealand $50 million upfront, with another $50 million payable one year later.
SWEDEN —Zealand Pharma has agreed to sell its economic interests in rusfertide to Royalty Pharma for $100 million as Takeda and Protagonist Therapeutics await a U.S. Food and Drug Administration (FDA) decision on the investigational blood cancer treatment.
The agreement gives Zealand $50 million upfront, with another $50 million payable one year later.
The Danish biopharma described rusfertide as a “non-core asset” and said the proceeds will support its strategy of launching five products by 2030.
Takeda and Protagonist expect the FDA to decide on rusfertide in the third quarter, following Phase 3 results that showed a 76.9% response rate among patients with polycythemia vera (PV), a rare blood cancer characterized by the overproduction of red blood cells.
Rusfertide is a peptide that mimics hepcidin, a natural hormone that regulates iron levels and red blood cell production.
By controlling iron availability, the treatment is designed to reduce excessive red blood cell production and potentially lessen patients’ reliance on regular blood removal, or phlebotomy.
Zealand retains a royalty interest
Zealand’s connection to rusfertide dates back to 2012, when it entered a research collaboration with Protagonist to develop disulfide-rich peptides (DRPs).
Under the agreement, Zealand was responsible for the clinical development of DRPs discovered through the partnership.
Although the collaboration ended in 2014, Zealand retained an economic interest in the asset that later became rusfertide.
Under the new agreement, Royalty Pharma will receive 0.75% of rusfertide’s net global sales above $1.5 billion.
Zealand will retain a 0.25% royalty on sales above the same threshold.
The transaction comes as Zealand seeks to deploy capital toward its broader metabolic health pipeline.
The company held DKK14.4 billion (US$2.2 billion) in cash at the end of June and said the additional proceeds would support its Metabolic Frontier 2030 strategy.
Funding Zealand’s metabolic pipeline
Among the company’s key pipeline assets is petrelintide, an amylin analog for obesity that is expected to enter Phase 3 development in the coming months.
Zealand is also developing survodutide, a glucagon/GLP-1 receptor agonist in partnership with Boehringer Ingelheim, which has already advanced into late-stage development.
“This agreement converts a future potential royalty stream into immediate capital that will be redeployed against future growth opportunities in line with our key strategic priorities under our Metabolic Frontier 2030 strategy,” said Henriette Wennicke, Zealand’s chief financial officer, in an August 12 statement.
Royalty Pharma, which specializes in acquiring biopharmaceutical royalty interests, has completed several deals this year, including transactions involving Neurimmune’s AstraZeneca-partnered transthyretin-mediated amyloidosis drug, Johnson & Johnson’s chronic autoimmune disease portfolio and Teva’s vitiligo treatment.
The company’s relationship with Zealand began in 2018, when it acquired royalty rights to Soliqua and Adlyxin, two diabetes medicines developed by Zealand and later licensed to Sanofi.
“We are delighted to expand our relationship with Zealand Pharma through a second collaboration,” said Royalty Pharma CEO Pablo Legorreta.
He added that rusfertide could become a transformative treatment option for people with polycythemia vera as it moves through regulatory review.
Be the first to leave a comment