Ascendis Pharma A/S (NASDAQ:ASND) stock plunges 13.29% (As on September 4, 11:27:44 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the second quarter of FY 24. Further, ASND and Royalty Pharma plc has today announced that Ascendis Pharma Bone Diseases A/S, a wholly-owned subsidiary of Ascendis Pharma A/S, has entered into a $150 million capped synthetic royalty funding agreement with Royalty Pharma based on U.S. net sales of YORVIPATH. Under the terms of the agreement, Ascendis receives an upfront payment of $150 million in exchange for a 3% royalty on U.S. net sales of YORVIPATH. The royalty payments to Royalty Pharma will cease upon reaching a multiple of 2.0x, or 1.65x if Royalty Pharma receives royalties in that amount by December 31, 2029.

Meanwhile, the company has received U.S. FDA approval for TransCon PTH, under the brand name YORVIPATH, for the treatment of hypoparathyroidism in adults. ASND is completing manufacturing of commercial product for the U.S. market and anticipate initial supply will be available in the first quarter of 2025. The Company is in dialogue with the FDA about commercialization of existing manufactured product, which if agreed, could be introduced in the U.S. in the fourth quarter of 2024. Second quarter YORVIPATH revenue totaled €5.2 million, reflecting the first full quarter of commercial launch in Germany and Austria as well initial revenue in International Markets. Initial revenue in France expected starting in the fourth quarter of 2024.

ASND in the second quarter of FY 24 has reported the adjusted loss per share of 1.91 euros ($2.11), missing the analysts’ estimates for the adjusted loss per share of 1.34 euros. The company had reported the adjusted revenue of 36 million euros in the second quarter of FY 24, missing the analysts’ estimates for revenue of 84.5 million euros. As of June 30, 2024, Ascendis Pharma had cash, cash equivalents, and marketable securities totaling €259 million, compared to €399 million as of December 31, 2023. Net finance income for the second quarter of 2024 was €29.4 million compared to a net finance income of €26.4 million during the same period in 2023.

Looking forward, full year 2024 SKYTROFA revenue expected to be €220 million to €240 million and expects total operating expenses (SG&A and R&D) to be approximately €600 million for 2024. Pending launch timing of YORVIPATH in the U.S., expect to be operating cash flow breakeven on a quarterly basis in 2024 or 2025.