12:57 PM EDT, 07/03/2024 (MT Newswires) -- DRI Healthcare Trust's US$46 million acquisition (US$13 million upfront + US$33 million in milestones) of royalty on Xenpozyme adds incremental 1% royalty on global sales to the trust's current 1% stream.

Xenpozyme has a current run rate of ~US$150 million in sales with Truist Securities' peak estimate of +US$500 million. "The expansion to DRI's previous royalty adds a complementary income stream at favorable terms, in our view," Truist said. Xenpozyme is the only enzyme replacement therapy (ERT) approved for the treatment of non-central nervous system manifestations of acid sphingomyelinase deficiency (ASMD), a rare disease with no other approved or late-stage competing products.

"We like the transaction," Truist said.

Reiterate Buy, $17 target.

Price: 15.96, Change: -0.12, Percent Change: -0.75