DRI Healthcare Announces US$316 Million Purchase of Tavapadon Royalty

EmitenTrust.com – DRI Healthcare to acquire royalty participation rights on tavapadon for an aggregate purchase price of US$316 million upon FDA approval of tavapadon –
– Tavapadon is a novel oral dopamine-D1R/D5R partial agonist that has been submitted to the FDA for approval for the treatment of Parkinson's disease –
– DRI Healthcare to host investor call on Monday, September 21 at 8:00 a.m. (ET) -

TORONTO, Sept. 21, 2026 /CNW/ -- DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) ("DRI Healthcare") today announced that it has entered into purchase agreements to acquire certain royalty participation rights in U.S. net sales of tavapadon from funds managed by Bain Capital ("Bain") and NovaQuest Capital Management ("NovaQuest"). The transaction is expected to close following approval of tavapadon by the U.S. Food and Drug Administration ("FDA") and the satisfaction of other customary closing conditions.

Tavapadon, an investigational Parkinson's disease drug candidate, is a novel selective D1/D5 receptor partial agonist that was studied as a once-daily oral medicine for Parkinson's disease for use both with and without levodopa. Tavapadon has been submitted to the FDA for approval and approval is expected in Q3 2026.

Transaction Terms

Under the terms of the purchase agreements, DRI Healthcare will pay an aggregate purchase price of US$316 million at closing. Closing is subject to FDA approval of tavapadon and the satisfaction of other customary closing conditions.

Following closing, DRI Healthcare will be entitled to receive tiered royalty payments on annual U.S. net sales of tavapadon, at combined tiered, mid-single digit to low-double digit royalty rates. DRI Healthcare will also be entitled to receive certain sales milestone payments upon first reaching certain cumulative U.S. net sales thresholds and four annual fixed payments of US$23.4 million on the first four anniversaries of FDA approval of Tavapadon. Aggregate receipts are subject to a contractual hard cap of US$437.5 million.

"This transaction will add a differentiated in-market asset to our portfolio with a combination of fixed payments, commercial milestones and tiered royalties," said Ali Hedayat, Chief Executive Officer of DRI Healthcare. "The acquisition will provide meaningful value to unitholders both through its standalone returns and by allowing us to optimize our balance sheet capacity. We believe the transaction allows us to achieve our aspirational 2030 Adjusted EBITDA goals in the absence of any further acquisitions over that horizon while still leaving us with ample capacity to grow beyond those levels."

"We believe tavapadon's novel mechanism (selective dopamine D1/D5 receptor partial agonist) and clinical profile coupled with high unmet medical need in Parkinson's disease support a compelling investment for unitholders," said Navin Jacob, Chief Investment Officer of DRI Healthcare. "We thank Bain and NovaQuest for their collaboration on this transaction and look forward to participating in tavapadon's future success."

Conference Call Information

DRI Healthcare will host a conference call and webcast to discuss the transaction on Monday, September 21 at 8:00 a.m. (ET). All interested parties may join the conference call by dialing 1-888-699-1199 or 416-945-7677 approximately 15 minutes prior to the call to secure a line.

A live webcast of the conference call, including a slide presentation, will be available at https://app.webinar.net/x9WkYqzEyQB. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on DRI Healthcare's website at drihealthcare.com/investors following the conference call date.

About Parkinson's Disease

Parkinson's disease (PD) is a progressive neurological and chronic neurological disorder affecting more than 10 million people globally. It is caused by the loss of dopamine-producing neurons in a region of the brain called the substantia nigra. By the time motor symptoms become apparent, 60 to 80 percent of those neurons have already been lost. PD presents with both motor and non-motor symptoms. Motor symptoms include tremor, limb rigidity, slowness of movement, and problems with balance and gait. Non-motor symptoms, which patients often find equally debilitating, include depression, anxiety, sleep disorders, cognitive changes and loss of smell. Symptoms progress at different rates and vary from person to person. There is no cure, and while treatments can improve quality of life, none has been shown to slow or halt disease progression.

Advisors

Cravath, Swaine & Moore LLP acted as lead transaction counsel to DRI Healthcare.

About DRI Healthcare

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 50-plus drugs, including Eylea, Keytruda, Lumvoa, Orserdu, Remicade, Spinraza, Stelara, Vonjo and Zytiga. DRI Healthcare's units are listed and trade on the TSX 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 including statements regarding the expected closing of the transaction, including satisfaction of closing conditions; the potential approval of tavapadon by the FDA; the payment of the purchase price on closing; DRI Healthcare's acquisition of royalty participation rights in tavapadon; the potential for commercialization of tavapadon and future U.S. net sales; and the potential receipt by DRI Healthcare of royalties, milestone payments and fixed payments in respect of tavapadon. 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. Forward-looking information is based on a number of assumptions 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, including, without limitation: the risk that U.S. FDA approval of tavapadon may not be obtained or may be delayed; the uncertainty of clinical and commercial success of tavapadon; competition from other products; and other risks and uncertainties disclosed in DRI Healthcare's most recent annual information form and under "Risk Factors" in DRI Healthcare's Management's Discussion and Analysis. You should not put undue reliance on forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, the actual results, performance or achievements of DRI Healthcare could differ materially from the results expressed in, or implied by, any forward-looking statements. 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 at DRI Healthcare's website at drihealthcare.com/investors.

For further information, please contact:

Bill Zhang
Head of Investor Relations
ir@drihealthcare.com

SOURCE DRI Healthcare Trust