ALBO - Albireo gains on royalty agreement for pruritus therapy
- Albireo Pharma, Inc. ( NASDAQ: ALBO ) added ~7% in the morning hours Thursday after the biotech focused on liver diseases announced an agreement with asset manager Sagard Healthcare Partners to sell royalties from the company's FDA-approved pruritus therapy Bylvay.
- Per the terms, Sagard will provide ALBO with a $115M upfront payment in return for a mid-single digit average royalty rate on Bylvay's global annual net revenues.
- The total royalties are capped at 1.6x of invested capital if repaid before Dec. 31, 2028, and 2.0x if repaid after that. The agreement ends with the achievement of the capped amount.
- The deal allows the company to extend its cash runway beyond at least 2024 when topline data is expected from the BOLD Phase 3 study for Bylvay in patients with biliary atresia.
- "These additional resources allow us to build Bylvay into a billion-dollar product and advance the development of our early asset pipeline," ALBO Chief Executive Ron Cooper remarked.
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Albireo gains on royalty agreement for pruritus therapy