Cravath and Ropes & Gray advised on DRI Healthcare’s $316 million acquisition of the royalty rights of Tavapadon.

DRI Healthcare Trust (“DRI Healthcare”), a pioneer in global pharmaceutical royalty monetization, announced that it has entered into purchase agreements to acquire certain royalty participation rights in U.S. net sales of tavapadon, an investigational Parkinson’s disease drug candidate, from funds managed by Bain Capital and NovaQuest Capital Management.

Under the terms of the purchase agreements, DRI Healthcare will pay an aggregate purchase price of $316 million at closing. Following closing, DRI Healthcare will be entitled to receive tiered royalty payments on annual U.S. net sales of tavapadon, at combined tiered, mid‑single digit to low‑double digit royalty rates. DRI Healthcare will also be entitled to receive certain sales milestone payments upon first reaching certain cumulative U.S. net sales thresholds and four annual fixed payments of $23.4 million on the first four anniversaries of FDA approval of tavapadon. Aggregate receipts are subject to a contractual hard cap of $437.5 million.

Tavapadon is a once-daily, oral, selective dopamine receptor partial agonist for Parkinson’s disease, with approval expected in 2026.

Cravath is representing DRI Healthcare in connection with the transaction.

The Cravath team is led by Partners Cole DuMond and Ryan J. Wichtowski and includes Of Counsel Joshua Kameel and Associates Liza C. Clark, Lindsey Corbett and Nilofar Vakili Calzoni on M&A and intellectual property matters.

Ropes & Gray represented Bain Capital.

The team was led by Life Sciences Licensing Partner Abby Gregor and Life Sciences Counsel Michael Spera, and included Private Equity Partner Milap Patel and Tax Partner Pamela Glazier.