05:49 PM EDT, 09/03/2024 (MT Newswires) -- Royalty Pharma plc ( RPRX ) entered into a $150 million capped synthetic royalty funding agreement with an Ascendis Pharma ( ASND ) unit.

The Ascendis Pharma Bone Diseases subsidiary will get an upfront payment of $150 million in exchange for a 3% royalty on US net sales of Yorvipath, a hormone replacement therapy, the companies said Tuesday.

The royalty payments to Royalty Pharma ( RPRX ) will stop once they have reached twice the initial amount, or 1.65 times the initial amount if achieved by Dec. 31, 2029.

Ascendis Pharma ( ASND ) shares tumbled 20% in recent after-hours trading, and Royalty Pharma ( RPRX ) rose 1.1%.

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