Royalty Pharma Secures $275M Synthetic Royalty Agreement with Denali for Tividenofusp Alfa
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 04 2025
0mins
Should l Buy DNLI?
Source: Globenewswire
- Funding Agreement Established: Royalty Pharma has signed a $275 million synthetic royalty funding agreement with Denali based on future net sales of tividenofusp alfa, reflecting strong confidence in this innovative therapy.
- Accelerated Approval Outlook: The Biologics License Application for tividenofusp alfa is under review by the FDA, with a target date of April 5, 2026, which will significantly bolster Denali's market prospects.
- Initial Payment Structure: Royalty Pharma will make an initial payment of $200 million at closing and an additional $75 million upon EMA approval of tividenofusp alfa, facilitating Denali's advancement of its development programs.
- Global Sales Rights: Royalty Pharma will receive a 9.25% royalty on worldwide net sales of tividenofusp alfa, which is expected to provide a stable cash flow for future revenue growth while supporting Denali's product commercialization efforts.
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Analyst Views on DNLI
Wall Street analysts forecast DNLI stock price to rise
10 Analyst Rating
10 Buy
0 Hold
0 Sell
Strong Buy
Current: 19.180
Low
25.00
Averages
32.78
High
40.00
Current: 19.180
Low
25.00
Averages
32.78
High
40.00
About DNLI
Denali Therapeutics Inc. is a biopharmaceutical company. The Company is focused on developing a broad portfolio of product candidates engineered to cross the blood-brain barrier (BBB) for the treatment of neurodegenerative diseases and lysosomal storage diseases. It has developed a technology, called the TransportVehicle (TV), to address the BBB challenge. Its advanced TV-enabled program is tividenofusp alfa (DNL310, ETV:IDS) for the potential treatment of mucopolysaccharidosis II (MPS II or Hunter syndrome). Its TV-enabled clinical development portfolio also includes DNL126 (ETV:SGSH) for MPS IIIA (Sanfilippo syndrome) and DNL593 (PTV:PGRN) for frontotemporal dementia-granulin (FTD-GRN). Its small-molecule clinical development portfolio includes BIIB122/DNL151 (small molecule LRRK2 inhibitor) for Parkinson’s disease; and DNL343 (small molecule eIF2B activator) for amyotrophic lateral sclerosis (ALS). It is also exploring programs in oncology, inflammation, and other diseases.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- FDA Priority Review: The Biologics License Application for DNL310 (for Hunter syndrome) is under FDA Priority Review, with a decision expected by April 5, 2026, which could expedite its market entry.
- Multiple Oral Presentations: Two oral presentations will discuss clinical study data for DNL310 and DNL126 (for Sanfilippo syndrome type A), demonstrating the company's progress in rare disease research.
- Poster Presentation Content: Denali will also present several posters, including a health outcomes analysis for MPS II patients and the study design for DNL952 (for Pompe disease), further solidifying its leadership in rare disease treatments.
See More
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- Covered Call Strategy: Investors can buy DNLI shares at $17.30 and sell a $17.50 call option at $0.25, committing to sell at expiration for a potential total return of 2.60%, enhancing overall investment yield.
- Expiration Risk: With the strike price approximately 1% above the current stock price, there is a 42% chance the call option will expire worthless, allowing investors to retain both their shares and the premium collected, further boosting returns.
- Yield Boost Effect: Should the call option expire worthless, investors could see an additional 1.45% return, annualized to 6.07%, referred to as YieldBoost, providing an attractive opportunity for enhanced earnings.
- Volatility Insights: The call option has an implied volatility of 67%, while the actual trailing twelve-month volatility stands at 61%, indicating market expectations for DNLI's price fluctuations, which investors should monitor for informed decision-making.
See More
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- FDA Review Progress: The Biologics License Application for tividenofusp alfa is under FDA Priority Review, with a decision expected by April 5, 2026, which will provide urgently needed treatment options for patients.
- Treatment Safety: The most common adverse events in the clinical trial were infusion-related reactions, which significantly decreased in incidence with continued use, demonstrating the therapy's good tolerability.
- Market Outlook: As the first enzyme replacement therapy designed to cross the blood-brain barrier, tividenofusp alfa could transform the treatment landscape for Hunter syndrome, addressing the urgent market demand for new therapies.
See More
