UK's Puretech Health surges on royalty deal with Royal Pharma

Royalty Pharma

23/03/2023 09:08

** Shares of UK biotherapeutics company Puretech Health
 PRTC.L  rise as much as 11% to 225.5p in early trade 
    ** Stock is top pct gainer across all London stocks
    ** Co enters into royalty agreement for Karuna Therapeutics'
investigational drug KarXT with U.S.-listed Royalty Pharma
 RPRX.O  for up to $500 mln
    ** As part of this deal, PRTC sold its right to receive a 3%
royalty from Karuna to Royalty Pharma on sales of up to $2
billion annually, after which threshold Royalty Pharma will
receive 33% and PRTC will retain 67% of royalty payments
    ** PRTC retains its current equity stake in Karuna in
addition to milestone payments and 20% of sub-license revenues
due to Co
    ** Stock down 16.51% YTD, as of last close

 (Reporting by Shreyaa Narayanan in Bengaluru)
 ((Shreyaa.Narayanan@thomsonreuters.com))