– Immediate and accretive cash flow generation replaces structured annual caps –
– Increasing capital deployment guidance to over
– Now expecting high-teens Royalty Income CAGR through 2025 and mid- to high-single digit Royalty Income CAGR through 2030, excluding any new transactions –
Omidria was approved by the
"We are excited to increase our royalty entitlement on Omidria as this deal not only generates immediate accretive value for unitholders but also gives us exposure to an important non-opioid pain drug that provides an alternative to physicians combating the ongoing opioid epidemic," said
Speaking on behalf of the investment manager, Chief Investment Officer
The transaction entitles
Omidria is a bisulfite-free and preservative-free product that is indicated for intracameral irrigation during cataract surgery to maintain pupil dilation and reduce post operative pain. Sufficient mydriasis during cataract surgery is critical to a successful surgical outcome by providing visualization of the surgical field, a good red reflex and adequate room for intraocular manipulation of surgical instruments. Unlike pre-operatively administered topical drugs for mydriasis and pain management that are washed out of the eye by irrigation solution used during intraocular lens replacement, intracameral irrigation of Omidria exposes target tissues to consistent concentrations of phenylephrine and ketorolac throughout the entire procedure thereby maintaining intraoperative mydriasis and reducing post operative pain.
Omidria requires no modification to the current surgical procedure offering an easy addition to current treatments and surgical technique and, unlike products from unregistered compounding facilities, offers the added benefit of uniform production under Good Manufacturing Practices. There are no other intracameral administered mydriatic or pain management products in development.
This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information generally can be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target", "guidance" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements regarding our deployment target and capacity available for deployment, portfolio, royalty cash receipts, the timing of royalty payments, growth in total income, anticipated royalty income, anticipated sales of the products underlying our royalties and our ability to reach our targets and expected timing of reimbursement for Omidria. This forward-looking information is subject to a number of assumptions, including, but not limited to: statements regarding potential royalty transactions which we reasonably expect to complete are based on our historical track record, statements regarding the terms and conditions of our transactions are based on the transaction documentation, statements with respect to royalty income, total income and future sales of the products underlying our existing royalties are based on assumptions with respect to timing of generic drugs entering the market, competitor drugs receiving approval and entering the market, and regulatory measures under the Inflation Reduction Act, and statements regarding expected timing of reimbursement for Omidria under the CAA'23 are based on our and our expert consultant's interpretation of the legislation, and are subject to a number of risks and uncertainties, many of which are beyond the Trust's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in the Trust's most recent annual information form. The anticipated royalty terms for products in our portfolio may be shorter than the period of patent protection for the applicable product, depending on many factors, including the entry of generic drugs into the marketplace and competition, all of which are outside our control. All forward-looking information in this news release speaks as of the date of this news release. The Trust does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in the Trust's filings with securities regulators, including its latest annual information form and Management's Discussion and Analysis. These filings are also available at the Trust's website at drihealthcare.com.
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