Ultragenyx sells portion of Crysvita royalties for $400 million

US biopharma company Ultragenyx Pharmaceutical (Nasdaq: RARE) today announced the sale, for $400 million, of an additional 25% of the company’s royalty interest from Kyowa Kirin (TYO: 4151) on the future sales of Crysvita (burosumab) in the USA and Canada to OMERS, one of Canada’s largest defined benefit pension plans.

Shares of the developer of serious rare and ultra-rare genetic diseases fell 5.6% to $30.13 on the news.

OMERS will receive the additional 25% royalty interest on net sales of Crysvita beginning in January 2028. Pursuant to the new agreement, OMERS will also continue to receive 30% of Crysvita net sales in the USA and Canada following the achievement of the 2022 royalty purchase agreement transaction's cap of 1.45 times the purchase price. Total payments to OMERS pursuant to the new agreement are capped at 1.55 times the purchase price.