HealthCare Royalty Partners Commits $205 Million to New Investments Over the First Half of 2016

STAMFORD, Conn.--(BUSINESS WIRE)-- HealthCare Royalty Partners (“HCRP”), a global healthcare investment firm, today announced its most productive first half to date, with $205 million committed across multiple investments. HCRP estimates that the first half of 2016 is already the largest on record for healthcare royalty financings as a whole, with nearly $3.6 billion of announced transactions through June 2016. This record level of activity has been driven, in part, by biotech companies seeking alternative financing solutions given the dislocation in the equity capital markets.

“This year’s systemic market volatility reverberated across industries and biotech shouldered much of the duress. Against this backdrop, the HCRP investment team has seen tremendous deal flow and closed on a number of attractive investment opportunities, resulting in a milestone first half for the firm,” said Todd Davis, co-founder and Managing Partner at HCRP. “As the biopharma industry continues to develop and commercialize new and innovative products, we look forward to being a funding partner that helps many of these companies achieve their long-term goals.”

Select 2016 investments, representative of the firm’s diversified financing structures, include:

• Coherus Biosciences: In February 2016, the firm led a $100 million senior convertible note financing ($75 million of which HCRP entities purchased) in Coherus Biosciences (Coherus). Coherus is a publicly traded (NASDAQ: CHRS), leading pure-play, global biosimilars company that is currently advancing three late-stage clinical products towards commercialization, CHS-1701 (pegfilgrastim/ Neulasta biosimilar), CHS-0214 (etanercept/ Enbrel biosimilar) and CHS-1420 (adalimumab/ Humira biosimilar).
• Inavir: In April 2016, the firm committed $20 million to acquire a portion of Aviragen Therapeutics’ (formerly known as Biota Pharmaceuticals) royalty interest in Inavir. This single inhaled dose product is marketed by Daiichi Sankyo and has become the leading treatment for influenza in Japan since launching in 2010.
• Relypsa: In April 2016, the firm contributed $60 million of an aggregate $150 million senior secured term loan to Relypsa, Inc. (Relypsa). Relypsa is a publicly traded (NASDAQ: RLYP) commercial-stage biopharmaceutical company based in Redwood City, CA focused on the discovery, development and commercialization of polymer-based drugs. The company’s first drug, Veltassa, was approved by the FDA in October 2015 for the treatment of hyperkalemia. Veltassa is the first new drug approved to treat hyperkalemia in over 50 years and the first drug approved to treat the management of chronic hyperkalemia.

HCRP has also strengthened its robust team of life science, biopharmaceutical and finance experts, tapping Dr. Warren Cooper to consult as an industry advisor. Dr. Cooper is a UK-trained physician with more than 35 years of experience in the global pharmaceutical industry, most recently serving as CEO of Prism Pharmaceuticals. Dr. Cooper will work alongside the HCRP team to evaluate potential investment opportunities.

“Warren’s prior experiences as a biotech company CEO, pharmaceutical executive and practicing physician complement our existing team well and will enhance our sourcing and evaluation capabilities. We have known Warren for over a decade and look forward to continuing to work with him to assess new investment opportunities.” said Clarke Futch, co-founder and Managing Partner at HCRP.

With the addition of Dr. Cooper, HCRP’s team, together with its Strategic Advisory Board, comprises 33 professionals, including 11 individuals with either PhDs, MDs or advanced degrees in life sciences.

Since inception, HealthCare Royalty Partners funds and affiliated entities have committed approximately $1.8 billion across 49 investments in 48 distinct products, with approximately $1 billion in capital available for new transactions.

About HealthCare Royalty Partners

HealthCare Royalty Partners ("HCRP") is a global healthcare investment firm focused on investing primarily in commercial stage healthcare product assets. HCRP has raised over $3 billion in committed capital and is headquartered in Stamford, CT. For more information, visit www.healthcareroyalty.com.

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ICR for Healthcare Royalty Partners
John McKenna, 203-682-8252
[email protected]

Source: HealthCare Royalty Partners

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