Royalty Pharma Consolidates Full Evrysdi Royalty Stream Through Strategic PTC Therapeutics Acquisition

Royalty Pharma plc (RPRX) has completed its acquisition of the remaining royalty stakes in Roche’s Evrysdi from PTC Therapeutics, marking a significant consolidation move in the biotech royalty landscape. The deal structure demonstrates the value investors place on predictable, tiered revenue streams from established pharmaceutical products.

Transaction Terms and Financial Structure

The agreement encompasses a $240 million upfront cash payment to PTC Therapeutics, with an additional $60 million contingent on achieving specific sales-based milestones. Upon closing, Royalty Pharma holds full ownership of all tiered royalty entitlements flowing from Roche’s global Evrysdi sales. This exclusive position eliminates previous co-ownership arrangements and consolidates the entire revenue stream under single management.

The Tiered Royalty Framework

The acquisition grants Royalty Pharma a sophisticated multi-tier royalty structure that incentivizes higher sales volumes:

• Base tier: 8% on sales reaching up to $500 million
• Second tier: 11% on sales between $500 million and $1 billion
• Third tier: 14% on sales ranging from $1 billion to $2 billion
• Premium tier: 16% on sales exceeding $2 billion

This escalating model aligns Royalty Pharma’s returns with Evrysdi’s commercial success, with higher percentage rates kicking in as the product scales globally.

Revenue Recognition Timeline

Royalty Pharma will begin collecting the increased tiered royalty payments starting in Q1 2026, based on Evrysdi net sales recorded during Q4 2025. This timeline positions the company to capture growing revenue from the product as it continues market penetration.

The consolidation of this royalty asset reflects Royalty Pharma’s strategy of acquiring and managing diversified pharmaceutical revenue streams from established commercial products.

Disclaimer: This analysis represents independent assessment and does not reflect official positions of affiliated entities.