Royalty Pharma (RPRX) is making a calculated bet on a blood disorder drug, and it's putting $100 million on the table. On Wednesday, the company signed a funding agreement with Zealand Pharma, paying that sum for economic rights tied to rusfertide (PTG-300), a treatment for polycythemia vera.

This isn't just a random purchase. Royalty Pharma is in the business of buying future revenue streams, and this deal is expected to add a nice chunk to its portfolio. The U.S. FDA has set a PDUFA goal date for the New Drug Application in the third quarter of 2026, so the clock is ticking.

Here's how the money flows: Zealand Pharma gets $50 million at closing and another $50 million on the first anniversary of the agreement. In exchange, Royalty Pharma gets a 1% royalty on potential future global net sales, plus regulatory and commercial milestones. But there's a twist. Zealand keeps a 0.25% royalty on annual global net sales above $1.5 billion, while Royalty Pharma gets a 0.75% royalty on sales exceeding that threshold. So if the drug really takes off, both parties benefit, but Royalty Pharma's share grows faster.

The drug itself is being developed for polycythemia vera, a condition where the body makes too many red blood cells. Takeda Pharmaceutical (TAK) will handle global commercialization, which is a big vote of confidence in the drug's potential.

A Quick Trip Down Memory Lane

This deal has some history behind it. Zealand Pharma and Protagonist Therapeutics (PTGX) first teamed up back in June 2012 to develop disulfide-rich peptides. Zealand handled the preclinical and clinical development of compounds from that collaboration, which ended in 2014. The payment obligations were later clarified in a 2021 settlement agreement.

Fast forward to January 2024, and Protagonist and Takeda signed a worldwide license and collaboration agreement for rusfertide. Now Royalty Pharma is getting in on the action.

This isn't Royalty Pharma's first big move this year. In July, it acquired a portion of Neurimmune's royalty interest in AstraZeneca's (AZN) cliramitug for up to $425 million. Cliramitug is a Phase 3 antibody designed to remove amyloid deposits in patients with TTR amyloidosis with cardiomyopathy. Results from the DepleTTR-CM trial are expected in 2028.

What the Charts Say

For the technical traders out there, Royalty Pharma's stock is currently trading at $59.37, which is 1.3% above its 20-day simple moving average of $58.32 and 4.1% above its 50-day SMA of $56.76. That sounds bullish, but the moving average convergence divergence (MACD) is below its signal line, which could be a warning sign.

At the time of publication on Thursday, shares were up 0.25% at $59.37. Not a huge move, but steady.

So, what's the takeaway? Royalty Pharma is diversifying its portfolio with a mix of near-term and long-term bets. The rusfertide deal is a relatively small investment compared to the cliramitug one, but it shows a pattern: the company is willing to back drugs with real potential, even if the payoff is years away. For investors, it's a reminder that in the world of biotech royalties, patience can be a virtue.