Basics of a Royalty Monetization Transaction

Eagle Pharmaceuticals, Inc. (OTCMKTS: EGRX) (the “Company” or “Eagle”) today announced that it has entered into a royalty purchase agreement with an entity that was provided capital by funds managed by Blue Owl Capital Inc. (“Blue Owl”) (the “Agreement”), dated March 31, 2025, to sell the royalty interest in annual net sales of BENDEKA® (bendamustine hydrochloride injection) in the United States for an aggregate purchase price of $69 million before transaction costs.

Nuvation Bio to receive $150 million in royalty interest financing and $50 million in debt upon U.S. FDA approval of taletrectinib, with access to additional $50 million in debt at the Company’s option

In the high-stakes world of pharmaceuticals, turning a promising molecule into a marketed drug is a marathon of innovation, regulatory hurdles, and jaw-dropping costs—often exceeding $1 billion per drug. For biotech companies, funding this journey is a constant challenge. Enter the synthetic royalty, a financial instrument that’s shaking up how drug developers raise financing by monetizing their assets, and sharing risks with royalty investors. But what exactly is a synthetic royalty, how does it work, and how does it differ from traditional royalty monetization or conventional financing like equity and debt?