Ardelyx, a biopharmaceutical company founded with a mission to discover, develop and commercialize innovative first-in-class medicines that meet significant unmet medical needs, announced that the company may receive up to $20 million from HealthCare Royalty Partners (HealthCare Royalty) from the sale of its future royalties and sales milestones from Kyowa Kirin Co., Ltd (Kyowa Kirin), its collaboration partner in Japan for the commercialization of tenapanor for hyperphosphatemia.

"We've been working with HealthCare Royalty for many years looking to find an opportunity for us to work together. They have been following the progress Kyowa Kirin has made in the development of tenapanor in Japan and this financing further validates the value and potential of tenapanor to treat patients with hyperphosphatemia," said Mike Raab, president and chief executive officer of Ardelyx.

"Together with the development milestones that may become due under the license agreement with Kyowa Kirin and the payments that may become due to Ardelyx under the recent amendment to the license agreement with Kyowa Kirin, we now have the opportunity to receive up to $85 million in non-dilutive capital based on the potential of tenapanor for hyperphosphatemia in Japan."

Under the terms of the agreement, Ardelyx will receive from HealthCare Royalty a $10 million upfront payment, an additional $5 million following Kyowa Kirin's receipt of regulatory approval to market tenapanor for hyperphosphatemia in Japan, and $5 million in the event net sales in Japan exceed a certain target level by 2025. In return, HealthCare Royalty will receive the royalty payments and commercial sales milestones that Ardelyx may earn under the license agreement with Kyowa Kirin.

"There has been a dearth of innovation in the hyperphosphatemia market for too long and we believe tenapanor, as an innovative non-binder therapy, has the potential to address signficiant unmet needs in treating and controlling hyperphosphatemia," said Clarke Futch, chairman and chief executive officer of HealthCare Royalty. "We are pleased to support Ardelyx's efforts, with its partner Kyowa Kirin, in gaining potential approval and commercializing tenapanor for hyperphosphatemia in Japan."