Fortress Biotech’s majority‑owned subsidiary, Cyprium Therapeutics, entered into a definitive asset purchase agreement to sell its Rare Pediatric Disease Priority Review Voucher (PRV) for gross proceeds of $205 million. The PRV was issued after the U.S. Food and Drug Administration approved ZYCUBO® (copper histidinate, formerly CUTX‑101) for Menkes disease on January 12 2026, and it was transferred to Sentynl Therapeutics in December 2023. Cyprium remains eligible to receive tiered royalties on net sales of ZYCUBO and up to $129 million in aggregate development and sales milestones from Sentynl.
The sale is subject to customary closing conditions, including the expiration of the 30‑day waiting period under the Hart‑Scott‑Rodino Antitrust Improvements Act. In addition, Cyprium is required to remit 20 % of the PRV sale proceeds to the Eunice Kennedy Shriver National Institute of Child Health and Human Development, a statutory obligation that reduces the net cash available to Fortress but aligns with federal incentives for rare disease development.
Fortress Biotech, which owns 80.4 % of Cyprium, expects to receive at least $100 million over time through dividends and intercompany payments from the sale proceeds, after Cyprium satisfies its obligations. The transaction provides a significant non‑dilutive capital infusion, allowing Fortress to de‑lever and improve its balance sheet. The company’s amended credit agreement with Oaktree now eases financial covenants and requires a prepayment of the loan contingent on the PRV monetization, further strengthening Fortress’s liquidity position.
Management highlighted the sale as part of Fortress’s strategy to execute value‑generating corporate transactions. CEO Lindsay A. Rosenwald noted that the PRV sale, combined with recent FDA approvals for ZYCUBO, Emrosi™, and UNLOXCYT™, demonstrates the company’s ability to unlock value from its portfolio and accelerate its path to profitability. The transaction also preserves Cyprium’s royalty and milestone rights, ensuring a continued revenue stream from ZYCUBO while providing Fortress with immediate cash to fund future growth initiatives.
The PRV sale underscores Fortress’s focus on rare disease assets and its willingness to monetize non‑core assets to strengthen its financial foundation. By converting a regulatory asset into cash, Fortress positions itself to invest in new pipeline candidates, support ongoing clinical development, and potentially pursue additional strategic acquisitions without diluting shareholders.
The transaction reflects a broader trend in the biopharma sector where companies monetize PRVs to accelerate capital generation and reduce debt burdens, thereby enhancing their capacity to pursue high‑potential therapeutics.
The sale also signals confidence in the continued commercial potential of ZYCUBO, as Cyprium retains royalty and milestone rights, ensuring that Fortress benefits from future sales of the Menkes disease therapy while securing immediate liquidity.
The transaction aligns with Fortress’s long‑term strategy of balancing portfolio growth with financial prudence, positioning the company for sustainable expansion in the rare disease space.
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