PTC Therapeutics stock jumps on royalty deal worth up to $1.5 billion
By Eleanor Laise
Shares gain 12% as PTC says proceeds of deal will be used to retire debt
PTC Therapeutics shares (PTCT) jumped 12% premarket on Thursday after the company announced a deal with Royalty Pharma PLC (RPRX) to monetize up to $1.5 billion of the royalty stream for the motor neuron disorder treatment Evrysdi.
Under terms of the deal, PTC will receive $1 billion in cash upfront for 67% of the outstanding royalties on the drug, with an option to sell all of the remaining Evrysdi royalties for up to $500 million.
The proceeds will be used to retire Blackstone debt obligations and fund planned operations, PTC said.
Evrysdi is a treatment for spinal muscular atrophy, a genetic disease affecting the nervous system and muscle movement. The drug was jointly developed by PTC, Roche Holding AG (RHHBY) and the SMA Foundation.
PTC retains up to $250 million in remaining Evrysdi commercial sales milestone payments, the company said.
PTC shares have dropped 46% in the year to date, while the S&P 500 SPX has gained 12.4%. Royalty Pharma shares gained 1.2% premarket Thursday and are down 30.5% in the year to date.
-Eleanor Laise
This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
10-19-23 0918ET
Copyright (c) 2023 Dow Jones & Company, Inc.-
Markets Brief: Is It Really a Surprising Quarter for Earnings?
-
After Earnings, Is Berkshire Hathaway Stock a Buy, a Sell, or Fairly Valued?
-
For Bond Investors, Delayed Rate Cuts Demand a Different Playbook
-
What’s Happening In the Markets This Week
-
How the Tokyo Stock Exchange Is Pushing for Better Shareholder Returns
-
Magnificent 7 Stocks Earnings Updates: AI Remains the Focus
-
Where We See Opportunities After an Ugly Month for Stocks
-
After Earnings, Is Alphabet Stock a Buy, a Sell, or Fairly Valued?
-
Berkshire Hathaway Earnings: Strong Insurance Results Continue to Lift Revenue and Profitability
-
10 Questions for Berkshire Hathaway’s 2024 Annual Meeting
-
After Earnings, Is Ford Stock a Buy, a Sell, or Fairly Valued?
-
3 Dividend Stocks for May 2024
-
Amgen Earnings: Obesity Drug Update Is Highly Encouraging
-
What’s Going on With Apple, Tesla, and Alphabet?
-
Apple Earnings: A Weak 2024, but Optimism for 2025
-
4 Utility Stocks to Play the AI Data Center Boom