Regenxbio signs strategic royalty monetization agreement for up to $250M

Regenxbio (RGNX) announced the closure of a non-dilutive, limited recourse royalty bond agreement of up to $250M with Healthcare Royalty. This agreement monetizes select anticipated royalties and milestones, and provides both immediate and expected future, non-dilutive capital. Regenxbio received $150M at closing, extending the company’s expected cash runway into early 2027. HCRx will provide REGENXBIO an up to $250M bond in exchange for rights, up to the principal amount and accrued interest, to anticipated royalty payments from sales of Zolgensma for Spinal Muscular Atrophy, as well as royalty and certain milestones payments from RGX-121 and RGX-111 for MPS II and MPS I, pursuant to a partnership with Nippon Shinyaku, and NAV Technology Platform licensees Rocket Pharmaceuticals and Ultragenyx. HCRx will receive quarterly interest payments derived solely from the royalty and milestone revenue received, less any payments to Regenxbio’s upstream licensors, and warrants to purchase up to 268,096 shares of the Company’s common stock at an exercise price of $14.92, which is a 100% premium to Regenxbio’s 30-day weighted average price. In addition to the $150M received at closing, $50M will be funded by April 30, 2027 upon the achievement of Zolgensma sales milestones and an additional $50M will be funded upon the mutual agreement of the parties, further extending the company’s cash runway. Regenxbio’s other future potential non-dilutive funding sources, including the potential sale of the expected Priority Review Voucher for RGX-121, development and sales milestones from AbbVie, and a majority of the development milestones from Nippon Shinyaku, are not included in this agreement and are retained by Regenxbio.