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MGH/Mass General Brigham Monetize Entyvio Royalties

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Industry: Pharmaceuticals

Key Facts

  • Massachusetts General Hospital (MGH) and Partners HealthCare System are long-time clients of Mintz – Partners has recently changed its name to Mass General Brigham
  • MGH and Mass General Brigham hired the Mintz IP transactions team to monetize a portion of their royalty interests in Entyvio, a monoclonal antibody used to treat ulcerative colitis and Crohn's disease
  • Royalty Pharma paid $94 million in a true sale roll-up transaction that was structured and negotiated by Mintz

The Situation

Entyvio, a monoclonal antibody used in the treatment of ulcerative colitis and Crohn's disease, is based on a cell line developed in an MGH lab and licensed to an affiliate of Takeda Pharmaceutical Company Limited. Takeda’s Entyvio received FDA approval in 2014 and is now available in more than 60 countries worldwide. It generated approximately $2.5 billion in worldwide sales in FY 2019. 

MGH and Mass General Brigham wanted shorter-term access to revenue from the license agreement with Takeda, and they hired Mintz to structure and negotiate a transaction that would efficiently leverage MGH and Mass General Brigham’s royalty interest in Entyvio.

The Outcome

The firm devised a relatively straightforward structure, which allowed MGH and Mass General Brigham to sell a portion of Entyvio royalties to Royalty Pharma while retaining some potential commercial upside. Because it was structured as a true sale roll-up, the transaction also served to de-risk a future potential income stream by providing a one-time up-front payment in lieu of future payments based on ongoing royalties.
 
The transaction, valued at $94 million, enabled MGH and Mass General Brigham to invest the immediate proceeds in additional research and accelerate discovery and scientific research for the benefit of patients worldwide.

The Royalty Pharma press release on the Entyvio transaction is available here.

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