Royalty Pharma Commits $250 M Note for 30% Ziihera Royalties Deal
Royalty Pharma will fund Zymeworks with a $250 million non-recourse royalty-backed note secured by 30% of Ziihera tiered royalties until Royalty Pharma receives up to 1.65× the note amount by December 2033 or 1.925× thereafter. The proceeds strengthen Zymeworks’ balance sheet, support share repurchases and extend cash runway beyond 2028.
1. Transaction Overview
Royalty Pharma has agreed to provide Zymeworks with a $250 million non-recourse royalty-backed note secured by 30% of tiered royalties from Ziihera sales under collaboration agreements with Jazz Pharmaceuticals and BeOne Medicines.
2. Repayment Structure
The note will cease when Royalty Pharma has received 1.65× the principal by December 31, 2033 or 1.925× thereafter, with Zymeworks retaining the remaining 70% of royalties until that cap is reached and full rights reverting thereafter.
3. Strategic Rationale
Zymeworks will use the non-dilutive proceeds to fund its share repurchase program, pursue strategic acquisitions and extend its cash runway beyond 2028, while Royalty Pharma secures long-term exposure to Ziihera’s potential global sales growth.