PTC Therapeutics stock jumps on royalty deal worth up to $1.5 billion
PTC Therapeutics shares
PTCT,
jumped 12% premarket on Thursday after the company announced a deal with Royalty Pharma PLC
RPRX,
to monetize up to $1.5 billion of the royalty stream for the motor neuron disorder treatment Evrysdi.
Under terms of the deal, PTC will receive $1 billion in cash upfront for 67% of the outstanding royalties on the drug, with an option to sell all of the remaining Evrysdi royalties for up to $500 million.
The proceeds will be used to retire Blackstone debt obligations and fund planned operations, PTC said.
Evrysdi is a treatment for spinal muscular atrophy, a genetic disease affecting the nervous system and muscle movement. The drug was jointly developed by PTC, Roche Holding AG
RHHBY,
and the SMA Foundation.
PTC retains up to $250 million in remaining Evrysdi commercial sales milestone payments, the company said.
PTC shares have dropped 46% in the year to date, while the S&P 500
SPX
has gained 12.4%. Royalty Pharma shares gained 1.2% premarket Thursday and are down 30.5% in the year to date.