Regenxbio (RGNX) said Monday it closed a non-dilutive, limited recourse royalty bond agreement of up to $250 million with Healthcare Royalty in exchange for rights to anticipated royalty payments from the sales of certain therapies.

The company received $150 million at closing, extending its expected cash runway into early 2027.

Healthcare Royalty will provide up to $250 million in principal in exchange for rights, up to that amount plus interest, to royalty payments from Zolgensma, used to treat spinal muscular atrophy, as well as milestone and royalty payments tied to RGX-121 and RGX-111 for mucopolysaccharidosis types II and I.

The agreement also covers payments from NAV Technology Platform licensees Rocket Pharmaceuticals (RCKT) and Ultragenyx.

Healthcare Royalty will receive quarterly interest payments sourced only from royalty and milestone revenue received, net of any obligations to upstream licensors. It will also receive warrants to purchase up to 268,096 shares of Regenxbio stock at an exercise price of $14.92.

Regenxbio will receive an additional $50 million by April 30, 2027, upon achieving Zolgensma sales milestones, and a further $50 million subject to mutual agreement.

Regenxbio said the agreement with Healthcare Royalty does not include other future potential non-dilutive funding sources, including the potential sale of the expected priority review voucher for RGX-121, development and sales milestones from AbbVie (ABBV), and a majority of the development milestones from Nippon Shinyaku.