Royalty Pharma Finalizes Evrysdi Royalty in $300 Million Deal, Betting on Blockbuster SMA Drug

NEW YORK, NY – December 29, 2025 – In a significant move solidifying its investment in a leading neurology treatment, Royalty Pharma plc today announced it has acquired the remaining royalty interest in Roche’s spinal muscular atrophy (SMA) drug, Evrysdi, from PTC Therapeutics. The deal involves an upfront payment of $240 million, with an additional $60 million in potential milestone payments tied to future sales, bringing the total potential value to $300 million.

This transaction gives Royalty Pharma 100% ownership of a tiered royalty on the worldwide net sales of Evrysdi, a high-growth oral therapy that has rapidly become a cornerstone treatment for a devastating rare disease. The acquisition underscores Royalty Pharma's strategy of concentrating capital on proven, top-tier biopharmaceutical assets with strong market performance and significant future potential.

Anatomy of a Blockbuster Royalty

Under the terms of the agreement, Royalty Pharma consolidates its position, moving from a partial to a full owner of the royalty stream originally held by PTC Therapeutics. Starting in the first quarter of 2026, which will reflect sales from the final quarter of 2025, Royalty Pharma will be entitled to the entire tiered royalty paid by Roche. This structure is designed to scale with the drug's success.

The royalty payments are tiered as follows:

• 8% on annual worldwide net sales up to $500 million
• 11% on sales between $500 million and $1 billion
• 14% on sales between $1 billion and $2 billion
• 16% on sales exceeding $2 billion

Given Evrysdi’s current sales trajectory, Royalty Pharma is positioned to benefit significantly from the highest tiers in the coming years. This deal effectively doubles down on a drug that is already a strong performer within the company's extensive portfolio, promising a more substantial and direct revenue stream from a product on a clear blockbuster path.

Evrysdi: A Transformative Therapy and Commercial Powerhouse

Evrysdi (risdiplam) has fundamentally changed the treatment landscape for spinal muscular atrophy, a progressive and life-threatening neuromuscular disease. Marketed by global pharmaceutical giant Roche, it is an orally administered survival motor neuron-2 (SMN2) splicing modifier, offering a crucial, non-invasive treatment option for patients.

Since its initial FDA approval in 2020, the drug has seen remarkable uptake, reaching over 21,000 patients across all ages, from infants to adults. This broad label, combined with its at-home oral administration, provides a significant advantage over competing SMA therapies that require invasive spinal injections or are administered as one-time gene therapies with specific patient limitations.

The drug's financial performance reflects its clinical value. In 2024, Evrysdi generated global sales of approximately CHF 1.6 billion (equivalent to $1.9 billion), marking an impressive 18% year-over-year growth at constant exchange rates. Analyst consensus projects that this momentum will continue, with sales expected to climb to CHF 2.3 billion (approximately $2.9 billion) by 2030. This robust growth forecast is the central pillar supporting Royalty Pharma's nine-figure investment.

The Royalty Pharma Playbook in Action

This acquisition is a quintessential example of Royalty Pharma’s business model. As the largest buyer of biopharmaceutical royalties, the company acts as a critical financial engine for the life sciences industry. Rather than developing drugs itself, it provides capital to innovators—ranging from academic institutions to global pharmaceutical companies—in exchange for future royalty streams on approved medicines.

This strategy allows drug developers like PTC Therapeutics to monetize future, uncertain revenue streams for immediate, non-dilutive capital. This cash can then be reinvested into research and development for their own pipelines, fueling the next wave of innovation. Meanwhile, Royalty Pharma gains a de-risked, revenue-generating asset with a predictable return profile, backed by the top-line sales of an already successful product.

The Evrysdi royalty now sits in a portfolio alongside some of the industry’s most successful drugs. Royalty Pharma holds royalty interests in more than 35 commercial products, including Vertex’s cystic fibrosis therapy Trikafta, Johnson & Johnson’s immunology drug Tremfya, GSK’s respiratory medicine Trelegy, and Biogen’s multiple sclerosis treatment Tysabri. Notably, the company also holds a royalty on Biogen's Spinraza, another major treatment for SMA, giving it a powerful and diversified position within this specific therapeutic area.

By consolidating its stake in Evrysdi, Royalty Pharma not only enhances its near-term cash flow but also strengthens its long-term position in the high-value neurology market. The deal showcases the company's ability to identify and secure premier assets, leveraging its deep industry expertise and substantial capital to build a portfolio that consistently captures the value of biopharmaceutical innovation.