DRI Healthcare to buy second royalty interest in Orserdu drug sales

• The acquisition entitles DRI Healthcare to a net low-to-high single-digit tiered royalty on the worldwide net sales of Orserdu
• It brings the firm’s total deployment to $766 million since its IPO, with an additional $69 million in potential milestone payments
• DRI Healthcare is a subsidiary of DRI Capital, a Canadian healthcare royalty private equity firm

DRI Healthcare Trust has agreed to acquire a second royalty interest in the sales of Orserdu, a drug used to treat postmenopausal adults with advanced or metastatic breast cancer who have experienced disease progression despite endocrine therapy.

DRI Healthcare entered into a purchase agreement with an affiliate of Radius Health, a Boston-based biopharmaceutical company focused on bone health, for an upfront purchase price of $130 million. The acquisition entitles DRI Healthcare to a net low-to-high single-digit tiered royalty on the worldwide net sales of Orserdu.

The deal brings DRI Healthcare’s total deployment to $766 million since its initial public offering, with an additional $69 million in potential milestone payments.

Orserdu was approved by the US Food and Drug Administration in January 2023 and is under review by the European Medicines Agency for potential approval.

“We are excited to add another royalty to our portfolio and increase our exposure to a high-quality and long-duration asset like Orserdu,” said Behzad Khosrowshahi, CEO of DRI Healthcare Trust, in a statement. “The confidence shown by our unitholders with the recently completed follow-on equity offering enhanced our capital resources to continue executing on value accretive transactions.”

DRI Healthcare is a subsidiary of DRI Capital, a Canadian healthcare royalty private equity firm. Since 1989, DRI has deployed more than $2.5 billion, acquiring more than 70 royalties on 40-plus drugs.