BioMarin (BMRN) Secured 20% U.S. Royalties on Yuviwel. Is Monetizing a Rival Better than Blocking It?

BioMarin Pharmaceutical Inc. (BMRN) struck a deal with Ascendis Pharma A/S (ASND) to convert a patent dispute into a 20% U.S. royalty agreement on Yuviwel, a growth-stimulating drug for children with achondroplasia. This license will pay BioMarin royalties from Yuviwel's U.S. net sales, starting from the first sale and extending into the EU, Brazil, and South Korea, until May 2030.

The agreement removes litigation costs and gives BioMarin a financial stake in Yuviwel's success without funding its development. The license also covers Yuviwel's patents for other potential indications, including hypochondroplasia, and combinations with other medicines. However, the royalty income may not fully offset the revenue loss if Yuviwel displaces Voxzogo, BioMarin's main competitor.

The broad license could also reduce future blocking leverage. The deal may not be the optimal choice if Yuviwel primarily takes market share from Voxzogo, as BioMarin would earn royalties while potentially surrendering higher-value product economics. The outcome depends on market expansion and franchise cannibalization through May 2030.