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Latest — 25 Aug 2026

Note or sale: the recourse ladder in royalty finance, and who wants which rung

On 3 June 2026 Mineralys Therapeutics borrowed money at SOFR plus 5.50 percent in order to stop paying a royalty. The company repurchased all potential future royalty payments due to Tanabe Pharma on lorundrostat for $200 million upfront and up to $100 million on commercial milestones, with Tanabe agreeing

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First lien, second lien, split lien: priority order and worked recoveries in royalty finance

Priority in a royalty financing breaks into two questions. One is vertical. Within a single pool of collateral, who stands on which rung. The other is horizontal. How many pools there are, and where each party sits in each of them. Most practitioners answer the first fluently and skip the

The Weekly Term Sheet (2026-W34)

Four royalty streams were originated in five days and not one published a rate. The largest was LEO Pharma taking worldwide rights to dersimelagon from Bain-owned Tanabe Pharma, up to $435M in upfront and near-term milestones plus tiered royalties, on an asset whose NDA has been with the

The Committee on Foreign Investment in the United States, and the royalty buyer

This piece treats the US side. The Chinese side is treated in the companion note, The Chinese gate. A contractual entitlement leaves. The operating capability does not. A fund organised outside the United States pays a US biotech for a percentage of net sales on a marketed product. It takes

Fund of the week: Innoviva (INVA)

Innoviva is a listed permanent-capital vehicle built on two GSK respiratory royalties. It files as a biopharmaceutical company. It behaves like a fund with an annuity attached, and it is in this series for that reason. A royalty stream it did not buy throws off around $240M a year

(Subscriber Special): The Chinese gate: what Beijing now controls in a China-origin royalty

The US regime asks where the asset is. The Chinese regime asks who is holding it. For a royalty on ex-China sales, that difference decides whether the stream can be sold at all, and it produces a result the opposite of the one most deal teams assume.

Company of the week: Anaptys

A listed royalty company whose lead royalty is pledged in full, whose second royalty pays its milestones to somebody else, and whose licensee it is suing for the drug back.

The bridge and the take-out: short paper against the pharmaceutical royalty

Bridge financing is the shortest paper in the capital structure, and it is regularly written against some of the longest assets in it. The take-out provision is the machinery that governs how, when, and at whose cost the short paper is replaced. This is an account of both, worked

The rate underneath the royalty: duration, alpha, and the arbitrage that is really a liability trade

A royalty book carries a modified duration near five years, a discount rate in which the risk-free is now more than a third of the total, and a preferred return hurdle struck when the five-year point was under 1%. The asset has not changed. What an allocator gives

Pre-merger financing: funding the interval between signing and closing

A pharmaceutical merger agreement fixes the price on the signing date and delivers it on the closing date. Between the two sit the tender offer clock, the shareholder vote, and the merger control timetable, and the interval runs from weeks to more than a year. Two financing problems live in

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Weekly structural analysis on pharmaceutical royalty financing. Deal mechanics, legal events, fund positioning, primary sources.

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