DRI Healthcare Trust Announces Acquisition of a Synthetic Royalty Interest in the U.S. Sales of Veligrotug and VRDN-003 for the Treatment of Thyroid Eye Disease (TED)

–Third synthetic royalty transaction & second pre-approval deal for DRI –
– Further increases portfolio exposure to rare diseases –
–  Long-dated cashflows, extend portfolio duration –
– DRI Healthcare to pay US$55 million upfront; up to US$300 million total investment, subject to achievement of certain milestones–

TORONTO, Oct. 20, 2025 /CNW/ - DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) ("DRI Healthcare"), a global leader in providing financing to advance innovation in the life sciences industry, has acquired a royalty interest in the U.S. net sales of veligrotug (formerly known as VRDN-001) and VRDN-003 from Viridian Therapeutics, Inc. (Nasdaq: VRDN) for an aggregate purchase price of up to US$300 million, including a US$55 million upfront payment and up to US$115 million in near-term clinical and regulatory milestone payments. "This transaction reflects our continued strategy of providing bespoke solutions to partners that are developing and commercializing novel therapies for conditions with high unmet needs," said Ali Hedayat, CEO of DRI Healthcare.

Veligrotug has shown clinically meaningful improvements across both active and chronic thyroid eye disease ("TED").  Veligrotug has met all primary and secondary endpoints across proptosis, Clinical Activity Score (CAS), and diplopia in each of its two pivotal phase 3 clinical trials, THRIVE-1 and THRIVE-2 for patients with active and chronic TED, respectively. The U.S. Food and Drug Administration ("FDA") has granted Breakthrough Therapy Designation, to veligrotug, which may shorten certain aspects of the regulatory review process, including eligibility for priority review. If approved, veligrotug will be only the second approved biologic treatment for TED with the potential to improve patients' quality-of-life with fewer doses and less time required for a full treatment course.

Viridian is also advancing VRDN-003, a potential best-in-class subcutaneous therapy for the treatment of TED via a program including two ongoing global phase 3 pivotal clinical trials, REVEAL-1 and REVEAL-2, in patients with active and chronic TED, respectively. Viridian anticipates reporting topline results from these trials in the first half of 2026. Subject to positive outcomes and subsequent regulatory review, the company plans to submit a Biologics License Application by the end of 2026. If approved, VRDN-003 is expected to provide additional convenience benefits with a low-volume autoinjector designed for self-administration planned for commercial launch.

"We are pleased to partner with Viridian as they continue to advance veligrotug and VRDN-003 in thyroid eye disease," said Navin Jacob, Chief Investment Officer of DRI Healthcare. "Veligrotug has shown robust data demonstrating clinically meaningful results across multiple endpoints in both active and chronic TED patients, with a quick onset of action while providing the additional convenience of fewer infusions than the current standard of care. We thank the Viridian team for collaborating with us to construct a deal that benefits both parties."

Transaction Terms

DRI Healthcare will earn a tiered royalty on annual U.S. net sales of Viridian's TED franchise (veligrotug and VRDN-003). Specifically, DRI is entitled to 7.50% on net sales up to and including US$600 million (Tier 1), 0.80% on net sales above US$600 million and up to and including US$900 million (Tier 2), and 0.25% on net sales above US$900 million and up to and including US$2.0 billion (Tier 3), subject to certain terms and conditions.

Viridian is entitled to receive up to $300 million in total consideration, including a US$55 million upfront payment and up to US$115 million in near-term clinical and regulatory milestone payments. 

Royalty receipts will be collected quarterly on a one-quarter lag, with the first royalty receipt being paid to DRI Healthcare in the quarter immediately following the first commercial sale of veligrotug in the US.

About Thyroid Eye Disease (TED)

TED is an autoimmune inflammatory disorder of the orbit (eye socket) that affects ~300K patients in the US and can cause debilitating and disfiguring eye symptoms (e.g., inflammation, proptosis, and double-vision) with severe disease leading to vision loss.

About Veligrotug and VRDN-003

Veligrotug (formerly known as VRDN-001), is a differentiated monoclonal antibody targeting insulin-like growth factor-1 receptor ("IGF-1R"), a clinically and commercially validated target for the treatment of TED. Viridian's second product, VRDN-003, is an extended half-life monoclonal antibody with the same binding domains as veligrotug, designed for administration as convenient, low-volume, subcutaneous auto-injector injections.

About Viridian Therapeutics

Viridian is a biopharmaceutical company focused on discovering, developing and commercializing potential best-in-class medicines for patients with serious and rare diseases. Viridian's expertise in antibody discovery and protein engineering enables the development of differentiated therapeutic candidates for previously validated drug targets in commercially established disease areas.

Viridian is advancing multiple candidates in the clinic for the treatment of patients with thyroid eye disease (TED). The company is conducting a pivotal program for veligrotug, including two global phase 3 clinical trials (THRIVE and THRIVE-2), to evaluate its efficacy and safety in patients with active and chronic TED. Both THRIVE and THRIVE-2 reported positive topline data, meeting all the primary and secondary endpoints of each study. Viridian is also advancing VRDN-003 as a potential best-in-class subcutaneous therapy for the treatment of TED, including two ongoing global phase 3 pivotal clinical trials, REVEAL-1 and REVEAL-2, to evaluate the efficacy and safety of VRDN-003 in patients with active and chronic TED. 

About DRI Healthcare Trust

DRI Healthcare is a pioneer in global pharmaceutical royalty monetization. Since our founding in 1989, we have deployed more than $3.0 billion, acquiring more than 75 royalties on 45-plus drugs, including Ekterly, Eylea, Keytruda, Orserdu, Remicade, Spinraza, Stelara, Vonjo and Zytiga. DRI Healthcare's units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in U.S. dollars under the symbol "DHT.U". To learn more, visit drihealthcare.com or follow us on LinkedIn.

Caution concerning forward-looking statements

This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information can generally be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, Viridian's regulatory interactions and anticipated timing of regulatory submissions, expectations regarding Viridian's anticipated data results and timing of such disclosure, including VRDN-003 topline data from the REVEAL-1 and REVEAL-2 trials in the first half of 2026, statements regarding the clinical development and anticipated commercialization of veligrotug and VRDN-003, whether veligrotug and VRDN-003 will serve an unmet need, the potential and timing of royalty payments, the anticipated royalty income and anticipated sales of the products underlying such royalties. This forward-looking information is subject to a number of assumptions, including, but not limited to: the potential utility, efficacy, potency, safety, clinical benefits, clinical response, convenience, and number of indications of veligrotug and VRDN-003, statements regarding the terms and conditions of our transaction being based on the transaction documentation, statements with respect to royalty income, total income and future sales of the products underlying our existing royalties being based on assumptions with respect to timing of generic drugs entering the market, competitor drugs receiving approval and entering the market, and general regulatory measures , and is subject to a number of risks and uncertainties, many of which are beyond DRI Healthcare's control, that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those that are disclosed in DRI Healthcare's most recent annual information form. All forward-looking information in this news release speaks as of the date of this news release. DRI Healthcare does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in DRI Healthcare's filings with securities regulators, including its latest annual information form and management's discussion and analysis. These filings are also available on the DRI Healthcare's website at drihealthcare.com.

SOURCE DRI Healthcare Trust

For further information, please contact: Zaheed Mawani, Chief Financial Officer, [email protected]