Geron announces $375M in synthetic royalty, debt financings with Royalty Pharma

Geron (GERN) announced up to $375M in synthetic royalty and debt financings with Royalty Pharma (RPRX) and investment funds managed by Pharmakon Advisors, of which $250M in cash was provided at closing and another $125M in debt is available. The transactions are comprised of a $125M synthetic royalty with Royalty Pharma and $250M of committed senior secured debt with investment funds managed by Pharmakon Advisors. Royalty Pharma has provided $125M at closing and will receive tiered royalty payments on U.S. net sales of Rytelo, ranging from 7.75% of annual net sales up to $500M, 3% of annual net sales between $500M and $1B, and 1% of annual net sales over $1B. Payments to Royalty Pharma will cease if the aggregate royalties payable through June 30, 2031, reach a multiple of 1.65 its investment, otherwise the royalty payments will continue until Royalty Pharma receives a multiple of 2.0 its investment. There are no other royalties payable on Rytelo, which was developed internally and is exclusively owned by Geron.