DRI Healthcare Trust nears US$316M Juvmo royalty close after FDA approval

A US$316 million Juvmo royalty purchase moved toward closing after FDA approval, as DRI Healthcare Trust TSEDHT.UN TSEDHT.U said Monday; its U.S.-dollar units last closed at US$13.90 in Toronto on Sept. 25 at 4 p.m. EDT. The trust expects to close Sept. 29, while receipts under the proposed rights are capped at US$437.5 million.

The FDA's approvals register dates its Juvmo decision to Sept. 25 and gives the approved use as treatment of Parkinson's disease in adults. DRI's description emphasizes motor symptoms; the drugmaker's oral treatment can be used with or without levodopa, according to the trust's release.

DRI is a Toronto pharmaceutical royalty investor that buys contractual rights to payments linked to drug sales. Its agreement is with funds managed by Bain Capital and NovaQuest Capital Management, which hold participation rights in Juvmo's U.S. sales. The Friday unit quote predates DRI's Monday announcement and does not measure the market's response to it.

Fixed Payments Begin in September 2027

DRI plans to pay US$316 million at closing with cash on hand and borrowings under its credit facility. The trust's Sept. 28 announcement does not give the split between cash and debt, leaving the financing cost of the acquisition unspecified.

The trust would receive four annual fixed payments of US$23.4 million each, beginning on or before Sept. 25, 2027. That schedule would total US$93.6 million if every payment arrives. DRI would also collect tiered royalties on annual U.S. net sales and payments when specified cumulative sales milestones are first reached.

The combined royalty rates run from the mid-single digits to the low double digits. DRI did not give the sales thresholds for the tiers or milestones in its Sept. 28 release, so the timing and size of the variable payments cannot be calculated from that announcement.

The US$437.5 million contractual cap applies to fixed payments, royalties and milestones together. It puts the maximum gross receipts US$121.5 million above the purchase price, before financing costs and without specifying when that ceiling might be reached. Future U.S. sales will determine how much of the variable stream DRI receives.

"This transaction will add a differentiated in-market asset to our portfolio with a combination of fixed payments, commercial milestones and tiered royalties," DRI chief executive Ali Hedayat said in the trust's Sept. 21 announcement.

An Oral Drug Joins the Parkinson's Treatment Market

AbbVie NYSEABBV submitted tavapadon for FDA review in September 2025 after three placebo-controlled Phase 3 studies. Two studied early Parkinson's disease, while the third tested the drug alongside levodopa in patients with motor fluctuations. The FDA's Sept. 25 approved-use listing covers adults with Parkinson's disease rather than only the adjunctive setting.

AbbVie's Juvmo product site describes oral tablets in several strengths. It lists low blood pressure, hallucinations and involuntary movements among serious possible effects.

Supernus Pharmaceuticals, Inc. NASDAQSUPN announced FDA approval in February 2025 for Onapgo, a continuous under-the-skin infusion for motor fluctuations in adults with advanced Parkinson's disease. Its device and patient population differ from Juvmo's oral, adult Parkinson's label, giving investors a relevant comparison without treating the two products as interchangeable.

The FDA's Sept. 25 novel-drug list places Juvmo among 44 approvals so far this year. Recent Mugglehead coverage also followed Atebrioz and Onswik through FDA approval, the regulatory step DRI's royalty agreement required.

Read more: Mirum Pharmaceuticals wins FDA approval for Atebrioz in FOP patients 12 and older

Read more: Eli Lilly and Company wins FDA approval for weekly Onswik insulin

DRI expects to close the purchase on Sept. 29, subject to its remaining conditions. That is when it would pay the sellers and acquire the rights to Juvmo's future payment stream.