– Transaction adds another innovative rare disease therapy to the DHT portfolio –
– Novel deal structure offers predictable annual cash flows as well as potential additional annual sales-based milestones and a one-time contingent payment –
TORONTO, Oct. 3, 2024 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) (the "Trust") today announced that a wholly owned subsidiary of the Trust has acquired a portion of Editas Medicine, Inc.'s ("Editas") payment rights under a non-exclusive license to Vertex Pharmaceuticals Incorporated ("Vertex") of Editas Medicine's Cas9 gene-editing technology for CASGEVY® (exagamglogene autotemcel) for an upfront purchase price of US$57 million.
CASGEVY® is the first treatment approved by the U.S. Food and Drug Administration ("FDA") to utilize CRISPR technology. CASGEVY® was approved by the FDA in December 2023 for the treatment of sickle cell disease ("SCD") and in January 2024 for the treatment of transfusion-dependent beta thalassemia ("TDT"), and by the European Medicines Agency for the treatment of both SCD and TDT in February 2024. CASGEVY® is the only approved gene-edited cell therapy for SCD and TDT. CASGEVY® is marketed worldwide by Vertex.
SCD is an inherited blood disorder causing severe pain, organ damage, and shortened lifespan due to misshapen red blood cells. TDT is an inherited disorder that requires frequent blood transfusions to manage anemia that leads to symptoms such as fatigue, shortness of breath, and complications affecting various organs. Both SCD and TDT significantly impact quality of life and shorten life expectancy.
The transaction entitles the Trust to specific payments based on a sublicensing agreement between Editas and Vertex. The payments include a share of the annual license fees that Vertex pays to Editas, which can range from US$5 million to US$40 million, and includes certain sales-based annual license fee increases. Finally, the Trust is entitled to receive a mid-double-digit percentage of Editas Medicine's portion of a $50 million contingent payment for which Editas Medicine is eligible under the Vertex license agreement. The first payment is expected to be received in January 2025 and the term of the payment streams runs until 2034.
"We are excited to further diversify our portfolio into a new therapeutic area," said Ali Hedayat, Acting Chief Executive Officer of the Trust's investment manager. "The structure of this transaction demonstrates our ability to work with leading innovators to find flexible non-dilutive financing options that enable them to reinvest in their business priorities and continue to develop transformational therapies."
"The acquisition of the payment rights tied to CASGEVY® aligns with our commitment to supporting transformative therapies that can substantially improve patients' lives and reshape the treatment landscape for these challenging conditions." said Navin Jacob, Chief Investment Officer of the investment manager. "We are grateful to the Editas management team for working with us to create a solution that works for both Editas and the Trust while ensuring a timely close."
For more information on Casgevy please visit: www.casgevy.com
About Sickle Cell Disease (SCD)
SCD is a debilitating, progressive, life shortening genetic disease. SCD patients report health-related quality of life scores well below the general population and significant health care resource utilization. SCD affects the red blood cells, which are essential for carrying oxygen to all organs and tissues of the body. SCD causes severe pain, organ damage and shortened life span due to misshapen or "sickled" red blood cells. The clinical hallmark of SCD is vaso-occlusive crises (VOCs), which are caused by blockages of blood vessels by sickled red blood cells and result in severe and debilitating pain that can happen anywhere in the body at any time. SCD requires lifelong treatment and significant use of health care resources, and ultimately results in reduced life expectancy, decreased quality of life and reduced lifetime earnings and productivity. Stem cell transplant from a matched donor is a potentially curative option but is only available to a small fraction of people living with SCD because of the lack of available donors.
About Transfusion-Dependent Beta Thalassemia (TDT)
TDT is a serious, life-threatening genetic disease. TDT patients report health-related quality of life scores below the general population and significant health care resource utilization. TDT requires frequent blood transfusions and iron chelation therapy throughout a person's life. Due to anemia, patients living with TDT may experience fatigue and shortness of breath, and infants may develop failure to thrive, jaundice and feeding problems. Complications of TDT can also include an enlarged spleen, liver and/or heart, misshapen bones and delayed puberty. TDT requires lifelong treatment and significant use of health care resources, and ultimately results in reduced life expectancy, decreased quality of life and reduced lifetime earnings and productivity. Stem cell transplant from a matched donor is a potentially curative option but is only available to a small fraction of people living with TDT because of the lack of available donors.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI Capital" or "DRI Healthcare") DRI Healthcare Trust's units are listed and traded on the Toronto Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in US dollars under the symbol "DHT.U". To learn more, visit or follow us on LinkedIn.
Caution concerning forward-looking statements
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of forward-looking words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements that we expect to receive payments based on licensing in connection with CASGEVY®. Forward-looking information is subject to a number of assumptions, including, but not limited to, statements regarding the terms and conditions of our transaction being based on the transaction documentation, and is subject to a number of risks and uncertainties, many of which are beyond the Trust's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in the Trust's most recent annual information form. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, the actual results, performance or achievements of the Trust could differ materially from the results expressed in, or implied by, any forward-looking statements. The forward-looking information in this news release is based on our assumptions regarding the performance interest in CASGEVY®. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust's filings with securities regulators, including its latest annual information form and Management's Discussion and Analysis. These filings are also available at the Trust's website at drihealthcaretrust.com.
