DRI Healthcare buys royalty interest in thyroid drugs

Mr. Ali Hedayat reports DRI HEALTHCARE TRUST ANNOUNCES ACQUISITION OF A SYNTHETIC ROYALTY INTEREST IN THE U.S. SALES OF VELIGROTUG AND VRDN-003 FOR THE TREATMENT OF THYROID EYE DISEASE (TED) DRI Healthcare Trust has acquired a royalty interest in the United States net sales of veligrotug (formerly known as VRDN-001) and VRDN-003 from Viridian Therapeutics Inc. (Nasdaq: VRDN) for an aggregate purchase price of up to $300-million (U.S.), including a $55-million (U.S.) upfront payment and up to $115-million (U.S.) in near-term clinical and regulatory milestone payments. "This transaction reflects our continued strategy of providing bespoke solutions to partners that are developing and commercializing novel therapies for conditions with high unmet needs," said Ali Hedayat, chief executive officer of DRI Healthcare. Third synthetic royalty transaction and second preapproval deal for DRI; Further increases portfolio exposure to rare diseases; Long-dated cashflows, extend portfolio duration; DRI Healthcare to pay $55-million (U.S.) upfront; up to $300-million (U.S.) total investment, subject to achievement of certain milestones. Veligrotug has shown clinically meaningful improvements across both active and chronic thyroid eye disease (TED). Veligrotug has met all primary and secondary end points across proptosis, clinical activity score (CAS) and diplopia in each of its two pivotal phase 3 clinical trials, Thrive-1 and Thrive-2 for patients with active and chronic TED, respectively. The United States Food and Drug Administration (FDA) has granted breakthrough therapy designation, to veligrotug, which may shorten certain aspects of the regulatory review process, including eligibility for priority review. If approved, veligrotug will be only the second approved biologic treatment for TED with the potential to improve patients' quality-of-life with fewer doses and less time required for a full treatment course. Viridian is also advancing VRDN-003, a potential best-in-class subcutaneous therapy for the treatment of TED via a program including two ongoing global phase 3 pivotal clinical trials, Reveal-1 and Reveal-2, in patients with active and chronic TED, respectively. Viridian anticipates reporting top-line results from these trials in the first half of 2026. Subject to positive outcomes and subsequent regulatory review, the company plans to submit a biologics licence application by the end of 2026. If approved, VRDN-003 is expected to provide additional convenience benefits with a low-volume autoinjector designed for self-administration planned for commercial launch. "We are pleased to partner with Viridian as they continue to advance veligrotug and VRDN-003 in thyroid eye disease," said Navin Jacob, chief investment officer of DRI Healthcare. "Veligrotug has shown robust data demonstrating clinically meaningful results across multiple end points in both active and chronic TED patients, with a quick onset of action while providing the additional convenience of fewer infusions than the current standard of care. We thank the Viridian team for collaborating with us to construct a deal that benefits both parties." Transaction terms DRI Healthcare will earn a tiered royalty on annual U.S. net sales of Viridian's TED franchise (veligrotug and VRDN-003). Specifically, DRI is entitled to 7.50 per cent on net sales up to and including $600-million (U.S.) (Tier 1), 0.80 per cent on net sales above $600-million (U.S.) and up to and including $900-million (U.S.) (Tier 2), and 0.25 per cent on net sales above $900-million (U.S.) and up to and including $2.0-billion (U.S.) (Tier 3), subject to certain terms and conditions. Viridian is entitled to receive up to $300-million in total consideration, including a $55-million (U.S.) upfront payment and up to $115-million (U.S.) in near-term clinical and regulatory milestone payments. Royalty receipts will be collected quarterly on a one-quarter lag, with the first royalty receipt being paid to DRI Healthcare in the quarter immediately following the first commercial sale of veligrotug in the U.S. About thyroid eye disease (TED) TED is an autoimmune inflammatory disorder of the orbit (eye socket) that affects approximately 300,000 patients in the U.S. and can cause debilitating and disfiguring eye symptoms (for example, inflammation, proptosis and double vision) with severe disease leading to vision loss. About Veligrotug and VRDN-003 Veligrotug (formerly known as VRDN-001) is a differentiated monoclonal antibody targeting insulin-like growth factor-1 receptor (IGF-1R), a clinically and commercially validated target for the treatment of TED. Viridian's second product, VRDN-003, is an extended half-life monoclonal antibody with the same binding domains as veligrotug, designed for administration as convenient, low-volume, subcutaneous auto-injector injections. About Viridian Therapeutics Inc. Viridian is a biopharmaceutical company focused on discovering, developing and commercializing potential best-in-class medicines for patients with serious and rare diseases. Viridian's expertise in antibody discovery and protein engineering enables the development of differentiated therapeutic candidates for previously validated drug targets in commercially established disease areas. Viridian is advancing multiple candidates in the clinic for the treatment of patients with thyroid eye disease (TED). The company is conducting a pivotal program for veligrotug, including two global phase 3 clinical trials (Thrive and Thrive-2), to evaluate its efficacy and safety in patients with active and chronic TED. Both Thrive and Thrive-2 reported positive top-line data, meeting all the primary and secondary end points of each study. Viridian is also advancing VRDN-003 as a potential best-in-class subcutaneous therapy for the treatment of TED, including two ongoing global phase 3 pivotal clinical trials, Reveal-1 and Reveal-2, to evaluate the efficacy and safety of VRDN-003 in patients with active and chronic TED. About DRI Healthcare Trust DRI Healthcare is a pioneer in global pharmaceutical royalty monetization. Since our founding in 1989, the trust deployed more than $3.0-billion, acquiring more than 75 royalties on 45-plus drugs, including Ekterly, Eylea, Keytruda, Orserdu, Remicade, Spinraza, Stelara, Vonjo and Zytiga. DRI Healthcare's units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol DHT.UN and in U.S. dollars under the symbol DHT.U. We seek Safe Harbor.