DRI Healthcare Trust Acquires Gene-Editing Technology Payment Streams for US$57 Million

DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) has made a strategic move by acquiring a portion of Editas Medicine, Inc.'s (Nasdaq: EDIT) payment rights under a non-exclusive license to Vertex Pharmaceuticals Incorporated (Vertex) for Editas Medicine's Cas9 gene-editing technology for CASGEVY® (exagamglogene autotemcel). The transaction, valued at US$57 million, entitles the Trust to specific payments based on a sublicensing agreement between Editas and Vertex.

CASGEVY®, the first treatment approved by the U.S. Food and Drug Administration (FDA) to utilize CRISPR technology, was approved for the treatment of sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT) in late 2023 and early 2024. Both SCD and TDT significantly impact quality of life and shorten life expectancy, making CASGEVY® a transformative therapy in these challenging conditions.

The transaction offers DRI Healthcare Trust predictable annual cash flows, as well as potential additional annual sales-based milestones and a one-time contingent payment. The Trust is entitled to receive a share of the annual license fees that Vertex pays to Editas, ranging from US$5 million to US$40 million, and a mid-double-digit percentage of Editas Medicine's portion of a $50 million contingent payment for which Editas Medicine is eligible under the Vertex license agreement. The first payment is expected in January 2025, with the term of the payment streams running until 2034.


The acquisition aligns with DRI's commitment to supporting transformative therapies and further diversifies its portfolio into a new therapeutic area. Ali Hedayat, Acting Chief Executive Officer of the Trust's investment manager, stated, "The structure of this transaction demonstrates our ability to work with leading innovators to find flexible non-dilutive financing options that enable them to reinvest in their business priorities and continue to develop transformational therapies."

For Editas Medicine, the deal strengthens its balance sheet with non-dilutive capital, enabling further pipeline development and related strategic priorities. Gilmore O'Neill, M.B., M.M.Sc., President and Chief Executive Officer of Editas Medicine, expressed his pleasure in partnering with DRI, stating, "We look forward to an ongoing relationship with DRI as we continue to execute our strategy."


In conclusion, DRI Healthcare Trust's acquisition of payment streams based on the Cas9 gene-editing technology for CASGEVY® demonstrates its commitment to supporting innovative rare disease therapies and diversifying its portfolio. The deal also provides Editas Medicine with non-dilutive capital to further develop its pipeline, fostering a mutually beneficial relationship between the two companies.