BRAIN Biotech Receives EUR 11.51 Million Milestone Payment from Royalty Pharma for Deucrictibant
核心洞察
BRAIN Biotech AG (搜索) received a EUR 11.51 million milestone payment from Royalty Pharma (搜索) tied to a key development milestone for the investigational compound deucrictibant.
The payment stems from a monetization agreement regarding licensing rights dated September 20, 2024, and raises the likelihood of additional future milestone payments totaling up to EUR 96.65 million.
Positive results from the CHAPTER-3 study for deucrictibant significantly increased the probability of future regulatory and commercial milestone payments, according to CFO Michael Schneiders.
BRAIN Biotech AG (搜索) has received a major milestone payment of EUR 11.51 million from Royalty Pharma (搜索), the company announced on September 9, 2026. The payment results from the achievement of a key development milestone for the investigational pharma compound deucrictibant, and builds on a monetization agreement regarding licensing rights with Royalty Pharma dated September 20, 2024.
The milestone reflects clinical progress made with deucrictibant, which is being developed by Pharvaris N.V. (NASDAQ: PHVS). As a result of this progress, the probability of additional future regulatory milestones of up to EUR 4.6 million and additional commercial milestone payments of up to EUR 92.05 million from Royalty Pharma (搜索) to BRAIN has increased significantly. In addition, the company may receive further regulatory milestone payments directly from Pharvaris N.V.
Michael Schneiders, CFO of BRAIN Biotech AG (搜索), commented: "I am extremely pleased with the positive developments at Pharvaris and the associated significant milestone payments from the Royalty Pharma (搜索) transaction. With these positive results from the CHAPTER-3 study for the investigational drug deucrcitibant, the likelihood of future milestone payments of up to EUR 96.65 million from Royalty Pharma to BRAIN has also increased significantly. This milestone payment combined with the bright future perspective further enhances our solid financial position. We are financially and operationally in good shape to accelerate the development of our core business."
Financial and Accounting Impact
The higher economic attractiveness of the agreement, resulting from the substantially improved prospects of success of the program, leads to a remeasurement of the liabilities arising from the monetization agreement with Royalty Pharma (搜索) in accordance with IFRS 9. This valuation effect results in a one-time, non-cash charge to the financial result in the profit and loss statement for the fiscal year 2025/26 and may amount to up to EUR 28 million. Over the entire term of the monetization agreement with Royalty Pharma, these initially negative accounting effects will, at a minimum, be fully offset.
In the AG's separate financial statements prepared in accordance with the accounting provisions of the German Commercial Code (HGB), the one-time negative effects on financial income described above will not occur. The company continues to expect adjusted consolidated EBITDA to be around the break-even point in the current fiscal year.
Company Background
The BRAIN Biotech Group is a leader in researching, developing, and producing specialty enzymes, focusing on the food and life sciences industries. The company's activities are divided into two business segments: BRAINBiocatalysts, covering development, production, and distribution of specialty enzymes, microorganisms, and ingredients, and BRAINBioIncubator, encompassing research-intensive development projects and pharmaceuticals.
BRAIN Biotech AG (搜索) has been listed on the Frankfurt Stock Exchange since February 9, 2016 (Ticker symbol: BNN; ISIN: DE0005203947). In the 2024/25 fiscal year, the group generated revenue of €49.6 million with around 280 employees.