10:44 AM EDT, 05/09/2024 (MT Newswires) -- Royalty Pharma ( RPRX ) said Thursday it will acquire the royalties and milestones on frexalimab owned by ImmuNext for about $525 million in cash.

Frexalimab, in development by Sanofi ( SNY ) , is being evaluated in three phase 3 clinical studies as a treatment for multiple sclerosis, a disease that affects the central nervous system.

ImmuNext is entitled to receive an upward tiering net royalty ranging from a high-single digit to low-double digit percentage of global net sales of frexalimab under a licensing deal with Sanofi ( SNY ), according to Royalty Pharma ( RPRX ).

Royalty Pharma ( RPRX ) said it will receive the entire net royalties on annual worldwide net sales of frexalimab of up to $2 billion and share a minority of the royalties above that threshold with ImmuNext shareholders. The acquisition will also include "substantial" potential milestone payments from Sanofi ( SNY ), the company added.

Royalty Pharma ( RPRX ) expects the deal to close later this month.

The company's shares were up 1.9% in recent trading.

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