United Therapeutics

Royalty Monetization$30 Million

Jul 2014

MarketerUnited Therapeutics

Orenitramâ„¢ is a prescription medicine used to treat pulmonary arterial hypertension (PAH) which is high blood pressure in the arteries of the lungs. It was the first FDA-approved oral prostacyclin class therapy in a tablet and as such it represents a meaningful advance in the treatment of PAH.

Background

Supernus Pharmaceuticals (NASDAQ:SUPN) was seeking to strengthen its balance sheet and enhance its financial flexibility by monetizing a non-core asset, namely the extended release formulation of treprostinil which it developed in conjunction with United Therapeutics. The company was launching its first two products into the epilepsy market and, as part of commercial infrastructure expansion, Supernus was seeking to raise additional growth capital. Since Orenitram was a launching product with uncertain peak sales, HCR purchased a partial monetization of the product royalty which allowed Supernus to meet its objective of raising a significant amount of cash, while also retaining the future upside potential of the product.

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