DRI Healthcare Trust has acquired a second royalty interest in the worldwide net sales of Xenpozyme (olipudase alfa) from HLS Therapeutics Inc. ("HLS") for an aggregate purchase price of up to $45.75 million, comprised of a $13.25 million upfront payment and up to $32.5 million in performance-based outbound milestone payments. The transaction entitles the Trust to an approximately 1% royalty on worldwide sales of Xenpozyme. The Trust will receive all royalties up to US$6.3 million in royalty receipts per calendar year, with a 50% step down for all royalty receipts above this amount.

Royalties will be paid bi-annually on a two-quarter lag from the half year period when sales occur. The company estimates that the Trust will receive its first royalty from this entitlement in second quarter of 2025 based on third and fourth quarter 2024 sales. Upon achievement of certain thresholds of worldwide net sales of Xenpozyme, the Trust is obligated to pay up to $32.5 million in milestone payments subject to the achievement of performance-based thresholds.