– Transaction will allow DHT to redeploy
capital into new deals generating compounding returns for
unitholders –
TORONTO, April 27,
2023 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX:
DHT.U) ("the Trust") announces that its wholly-owned subsidiary has
sold its royalty interest and milestone payment obligations in the
worldwide sales of TZIELD™ to a subsidiary of Sanofi S.A.
("Sanofi") for US$210 million.
"DRI Healthcare is excited about the dramatic positive impact
that TZIELD™ will have on patients who are at risk of developing
Type 1 Diabetes," said Behzad
Khosrowshahi, Chief Executive Officer of DRI Healthcare
Trust. "This is only the second time in 21 years that we have sold
a royalty to a third party. Having only recently announced the
TZIELD™ royalty acquisition, DRI Healthcare was not looking to sell
the royalty."
"The Trust originally purchased the TZIELD™ royalty on
March 8, 2023 for US$100 million upfront and a commitment to make
certain milestone payments. We have sold the royalty for
US$210 million upfront and assigned
our obligations to make any milestone payments to Sanofi. The
proceeds generated by this transaction provide significant value
for unitholders and allow us to compound that value by allocating
capital to transactions in our pipeline of royalty
opportunities."
DRI Healthcare intends to use US$20
million of the proceeds from this transaction to pay an
additional special cash distribution to unitholders of record as of
June 30, 2023. A further portion of
the proceeds will be used to pay down the entire debt outstanding
under DRI Healthcare's revolving acquisition credit facility,
leaving significant cash and credit available to invest in its
pipeline of innovative opportunities.
The Trust's wholly-owned subsidiary has assigned all of its
rights and obligations under the purchase agreement with
MacroGenics, Inc. ("MacroGenics") to Sanofi. The Trust's
wholly-owned subsidiary previously agreed to pay MacroGenics a
milestone payment of up to US$50
million upon the occurrence of certain pre-specified events
and a second milestone payment of US$50
million in the event TZIELD™ sales exceed certain
thresholds.
About DRI Healthcare Trust
DRI Healthcare Trust is managed by DRI Capital Inc. ("DRI
Capital"), the pioneer in global pharmaceutical royalty
monetization with a more than 30-year history of accelerating
innovation by providing capital to inventors, academic institutions
and biopharma companies. Since our founding in 1989, DRI Capital
has deployed more than US$2.5
billion, acquiring more than 70 royalties on 40-plus drugs,
including Eylea, Spinraza, Zytiga, Remicade, Keytruda and Stelara.
DRI Healthcare Trust'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". To learn more, visit
drihealthcaretrust.com or follow us on LinkedIn. References in
this news release to "DRI Healthcare" refer to the Trust and its
subsidiaries, on a consolidated basis.
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 regarding intended use of proceeds of the
transaction and the impact of the transaction on the Trust.
Forward-looking information is based on a number of assumptions 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. 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.
SOURCE DRI Healthcare Trust