Kastle will give Ionis a 10% stake in the newly-founded, Chicago-based biotech company and it will pay Ionis (formerly Isis Pharmaceuticals) $15m up front plus another $10m in three years and up to $70m in sales milestone fees. Ionis will earn royalties in the low to mid-teens beginning in 2017. Sanofi Genzyme is entitled to a 3% royalty on Kynamro sales and 3% of the fees that Ionis earns from Kastle, which was formed in 2015 to buy, develop and commercialize medicines for unmet medical needs (Also see "JPM: Ionis Looks Past Kynamro To Profitability" - Scrip, 13 January, 2016.).
Kastle President Bryan Stuart noted in a joint statement from the company and Ionis that Kynamro is an ideal first...