- DRI Healthcare Trust (DHT.UN) receives FDA approval for VONJO
- VONJO is a drug candidate to treat adults with intermediate or high-risk primary or secondary myelofibrosis
- The approval allowed completion of a transaction with CTI BioPharma Corp. for a tiered royalty on VONJO for US$60 million
- The completion of the royalty transaction is expected to happen by Friday
- DRI Healthcare Trust (DHT.UN) is up 10.74 per cent trading at $6.70 per share as of 11:49 a.m. EST
DRI Healthcare Trust (DHT UN) has received FDA approval for VONJO, a drug candidate to treat adults with primary or secondary myelofibrosis.
Myelofibrosis is a bone marrow cancer that results in the formation of fibrous scar tissue and can lead to anemia, weakness, fatigue and an enlarged spleen or liver.
Behzad Khosrowshahi, CEO of DRI Healthcare Trust, stated,
“We are very pleased that the FDA has approved VONJO, a groundbreaking drug that addresses a high unmet medical need, offering a meaningful new treatment option for adults with myelofibrosis with thrombocytopenia, a patient population for whom therapies do not currently exist.”
The approval resulted in the completion of a transaction with CTI BioPharma Corp. for a tiered royalty on VONJO for US$60 million, as announced in August.
The transaction entitles DRI to receive royalties on the net sales of VONJO in the United States equal to 9.6 per cent of the first US$125 million of annual net sales, 4.5 per cent between US$125 million and US$175 million, and 0.5 per cent between US$175 million and US$400 million. DRI will have no entitlement above US$400 million of the annual net sales.
CTI is entitled to an additional US$25 million if VONJO sales exceed certain thresholds before Q3 2023.
The royalty transaction is expected to be completed by Friday, March 4th.
“The addition of the VONJO royalty provides an attractive, growing cash flow profile and extends our overall portfolio duration,” said Khosrowshahi.
DRI Healthcare Trust (DHT.UN) is up 10.74 per cent trading at $6.70 per share as of 11:49 a.m. EST.