DRI Healthcare Trust secures royalty rights for sebetralstat
Kalvista's on-demand HAE treatment up for approval in several countries
DRI Healthcare Trust, an investment firm, has acquired rights to royalty interest in sebetralstat, an on-demand treatment for hereditary angioedema (HAE) that’s being considered for approval in several countries, including the U.S.
For Kalvista Pharmaceuticals, the therapy’s developer, the deal could be worth more than $175 million, according to a DRI press release.
In one clinical trial, HAE patients taking sebetralstat within 10 minutes of a swelling attack began experiencing symptom relief within two hours. DRI noted that the oral treatment candidate also showed a favorable safety profile in clinical studies.
“Sebetralstat has exhibited robust clinical data, and we are excited about the potential long duration of cash flows that this deal presents to our unitholders,” said Ali Hedayat, acting CEO of the trust’s investment manager.
With this transaction, DRI will be entitled to 5% of all net sales of sebetralstat up to $500 million. The trust also would get 1.1% of net sales from $500 million up to and including $750 million, and 0.25% on net sales beyond $750 million.
In exchange, DRI is making a $100 million upfront payment to Kalvista. If sebetralstat is approved in the U.S. before October 2025, Kalvista would have the option for another $22 million payment, in which case the trust’s royalty rate on sales of sebetralstat up to $500 million would increase from 5% to 6%, according to DRI.
Deal on sebetralstat royalty rights could net Kalvista $179M
As part of the investment deal, should annual worldwide net sales of sebetralstat reach $550 million in any calendar year before the start of 2031, Kalvista would be eligible for another payment of $50 million, or $57 million if it ends up receiving the post-approval $22 million payment.
All told, the transaction has a price tag for DRI of up to $179 million to be paid to Kalvista. Separately, the trust is also making a $5 million investment in Kalvista’s common stock.
“Our royalty investment reflects our research-driven belief that sebetralstat has the potential to be the foundational treatment for all people living with HAE,” said Navin Jacob, chief investment officer of DRI’s investment manager.
An oral small molecule, sebetralstat is designed to block the activity of kallikrein, the enzyme that mediates the production of bradykinin, the signaling molecule that drives swelling in HAE.
Sebetralstat is up for approval in the U.S. and the European Union as a potential on-demand treatment to manage HAE swelling attacks. It’s also being considered for approval for HAE patients ages 12 and older in Australia, Singapore, Switzerland, and the U.K.
Our royalty investment reflects our research-driven belief that sebetralstat has the potential to be the foundational treatment for all people living with HAE.
Although several on-demand treatments are available for HAE, they are all given by injection. Sebetralstat is poised to become the first oral option on-demand HAE treatment. The U.S. Food and Drug Administration is expected to announce its decision on the therapy’s potential approval by June 17, 2025.
Data from a Phase 3 clinical trial called KONFIDENT (NCT05259917), which tested sebetralstat against a placebo in more than 100 people with HAE types 1 or 2, showed that the therapy was able to provide symptom relief within two hours. Patients on the placebo, meanwhile, took more than six hours to experience symptom relief.
Sebetralstat also outperformed the placebo in its ability to reduce attack severity and accelerate the time to attack resolution. These data formed the bedrock of Kalvista’s applications requesting the treatment’s approval.
“We would like to thank the KalVista team for working together to craft a mutually beneficial deal for both organizations,” Jacob said.
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