By Connor Hart
Denali Therapeutics and Royalty Pharma entered a $275 million royalty funding agreement based on future sales of tividenofusp alfa.
Tividenofusp alfa is Denali's lead therapy that aims to treat mucopolysaccharidosis type II, or Hunter syndrome. This is a rare, inherited disorder marked by an abnormal accumulation of complex sugars in cells, which affects many bodily systems.
The companies said Thursday that the agreement is subject to various closing conditions. These include Denali receiving accelerated approval from the U.S. Food and Drug Administration for the treatment. A biologics license application for the accelerated approval of the treatment is currently under review by the FDA.
Under the deal, Royalty Pharma would make an initial $200 million payment at the closing, as well as an additional $75 million payment if the treatment is approved by the European Medicines Agency by Dec. 31, 2029.
In exchange, Royalty Pharma will receive a 9.25% royalty on worldwide net sales of tividenofusp alfa from Denali.
The royalty payments would cease upon reaching a 3x multiple, or 2.5x multiple if achieved by the first quarter of 2039, the companies said.
Denali Chief Executive Ryan Watts said the additional funds will help position the company to advance its development programs as it prepares to launch tividenofusp alfa.
Royalty Pharma Chief Executive Pablo Legorreta said the company is "thrilled to establish a relationship with Denali and believe tividenofusp alfa is a potential practice-changing therapy that could transform the lives of patients with Hunter syndrome."
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
December 04, 2025 08:06 ET (13:06 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.