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)

Executive Summary

• DRI Healthcare Trust entered into a synthetic royalty transaction with Viridian Therapeutics, acquiring a tiered royalty on U.S. net sales of veligrotug and VRDN‑003 for up to US$300 million total consideration.
• The deal includes an upfront cash payment of US$55 million plus up to US$115 million in near‑term clinical and regulatory milestone payments, with additional contingent payments tied to sales milestones.
• The royalty structure provides DRI Healthcare with 7.50% on the first US$600 M of net sales, decreasing tiers thereafter, creating long‑dated cash flows and extending portfolio duration in the rare‑disease space.

Key Details

• Purchase Price: Up to US$300 million total; US$55 million paid at signing.
• Milestone Payments: Up to US$115 million payable upon achievement of specified clinical and regulatory milestones (near‑term).
• Royalty Tiers:
• Tier 1 – 7.50% on net sales ≤ US$600 M
• Tier 2 – 0.80% on net sales > US$600 M up to US$900 M
• Tier 3 – 0.25% on net sales > US$900 M up to US$2 B
• Royalty Collection: Quarterly, with a one‑quarter lag; first payment due the quarter after veligrotug’s initial U.S. commercial sale.
• Products Covered:
• Veligrotug (formerly VRDN‑001) – FDA Breakthrough Therapy Designation; Phase 3 THRIVE‑1 & THRIVE‑2 met all primary/secondary endpoints.
• VRDN‑003 – Subcutaneous monoclonal antibody in Phase 3 REVEAL‑1 & REVEAL‑2; topline data expected H1 2026, BLA filing targeted end of 2026.
• Strategic Rationale: Enhances DRI’s exposure to rare diseases, adds long‑dated cash flows, and extends the duration of its royalty portfolio.
• Quotes:
• “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,” – Ali Hedayat, CEO, DRI Healthcare.
• “We are pleased to partner with Viridian as they continue to advance veligrotug and VRDN‑003 in thyroid eye disease,” – Navin Jacob, CIO, DRI Healthcare.

Notable Quotes

• Ali Hedayat (CEO, DRI Healthcare): “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.”
• Navin Jacob (Chief Investment Officer, DRI Healthcare): “Veligrotug has shown robust data demonstrating clinically meaningful results… We thank the Viridian team for collaborating with us to construct a deal that benefits both parties.”