Syndax Secures $350M Synthetic Royalty Deal With Royalty Pharma For Niktimvo™

Syndax Pharmaceuticals has announced a $350 million synthetic royalty funding agreement with Royalty Pharma based on the U.S. net sales of their product, Niktimvo™ (axatilimab-csfr). As part of the deal, Syndax received the entire upfront amount of $350 million in exchange for a 13.8% royalty on Niktimvo’s U.S. sales. Payments to Royalty Pharma will stop once a multiple of 2.35x is achieved.

Michael A. Metzger, Chief Executive Officer of Syndax, said in a statement, "We expect this transaction to fund us through profitability while ensuring that we continue to participate in the profits from Niktimvo and retain the upside of its future growth. With this significant infusion of capital, we are well positioned to successfully launch two first-in-class medicines and expand their opportunity with additional indications.

He also stated,  "Royalty Pharma shares our belief that Niktimvo can create significant value as a new treatment option for patients with chronic graft-versus-host disease (GVHD) and recognizes its multi-billion-dollar franchise potential."

"We are excited to partner with Syndax, an innovative oncology company with an exciting pipeline. Niktimvo is a first-in-class product that has the potential to address the serious and devastating complications associated with chronic GVHD, where there is a clear unmet need for additional treatment options. We look forward to Syndax and their partner Incyte launching Niktimvo soon and bringing this important medicine to GVHD patients," commented Pablo Legorreta, founder and CEO of Royalty Pharma. 

Goldman Sachs & Co. LLC served as the exclusive financial advisor for Syndax, while Cooley LLP provided legal counsel. Royalty Pharma was advised legally by Gibson, Dunn & Crutcher LLP and Dechert LLP.