Mr. Ali Hedayat reports

DRI HEALTHCARE TRUST ANNOUNCES ACQUISITION OF PAYMENT STREAMS BASED ON THE CAS9 GENE-EDITING TECHNOLOGY FOR CASGEVY (EXAGAMGLOGENE AUTOTEMCEL)

A wholly owned subsidiary of DRI Healthcare Trust has acquired a portion of Editas Medicine Inc.'s payment rights under a non-exclusive licence to Vertex Pharmaceuticals Inc. of Editas Medicine's Cas9 gene-editing technology for Casgevy (exagamglogene autotemcel) for an upfront purchase price of $57-million (U.S.).

Casgevy is the first treatment approved by the United States Food and Drug Administration (FDA) to utilize CRISPR technology. Casgevy was approved by the FDA in December, 2023, for the treatment of sickle cell disease (SCD) and in January, 2024, for the treatment of transfusion-dependent beta thalassemia (TDT), and by the European Medicines Agency for the treatment of both SCD and TDT in February, 2024. Casgevy is the only approved gene-edited cell therapy for SCD and TDT. Casgevy is marketed worldwide by Vertex.

SCD is an inherited blood disorder causing severe pain, organ damage and shortened life span due to misshapen red blood cells. TDT is an inherited disorder that requires frequent blood transfusions to manage anemia that leads to symptoms such as fatigue, shortness of breath and complications affecting various organs. Both SCD and TDT significantly impact quality of life and shorten life expectancy.

The transaction entitles the trust to specific payments based on a sublicensing agreement between Editas and Vertex. The payments include a share of the annual licence fees that Vertex pays to Editas, which can range from $5-million (U.S.) to $405-million (U.S.), and includes certain sales-based annual licence fee increases. Finally, the trust is entitled to receive a mid-double-digit percentage of Editas Medicine's portion of a $50-million contingent payment for which Editas Medicine is eligible under the Vertex licence agreement. The first payment is expected to be received in January, 2025, and the term of the payment streams runs until 2034.

"We are excited to further diversify our portfolio into a new therapeutic area," said Ali Hedayat, acting chief executive officer of the trust's investment manager. "The structure of this transaction demonstrates our ability to work with leading innovators to find flexible non-dilutive financing options that enable them to reinvest in their business priorities and continue to develop transformational therapies."

"The acquisition of the payment rights tied to Casgevy aligns with our commitment to supporting transformative therapies that can substantially improve patients' lives and reshape the treatment landscape for these challenging conditions," said Navin Jacob, chief investment officer of the investment manager. "We are grateful to the Editas management team for working with us to create a solution that works for both Editas and the trust while ensuring a timely close."

About sickle cell disease (SCD)

SCD is a debilitating, progressive, life-shortening genetic disease. SCD patients report health-related quality of life scores well below the general population and significant health care resource utilization. SCD affects the red blood cells, which are essential for carrying oxygen to all organs and tissues of the body. SCD causes severe pain, organ damage and shortened life span due to misshapen or "sickled" red blood cells. The clinical hallmark of SCD is vaso-occlusive crises (VOCs), which are caused by blockages of blood vessels by sickled red blood cells and result in severe and debilitating pain that can happen anywhere in the body at any time. SCD requires lifelong treatment and significant use of health care resources, and ultimately results in reduced life expectancy, decreased quality of life, and reduced lifetime earnings and productivity. Stem cell transplant from a matched donor is a potentially curative option but is only available to a small fraction of people living with SCD because of the lack of available donors.

About transfusion-dependent beta thalassemia (TDT)

TDT is a serious, life-threatening genetic disease. TDT patients report health-related quality of life scores below the general population and significant health care resource utilization. TDT requires frequent blood transfusions and iron chelation therapy throughout a person's life. Due to anemia, patients living with TDT may experience fatigue and shortness of breath, and infants may develop failure to thrive, jaundice and feeding problems. Complications of TDT can also include an enlarged spleen, liver and/or heart, misshapen bones, and delayed puberty. TDT requires lifelong treatment and significant use of health care resources, and ultimately results in reduced life expectancy, decreased quality of life, and reduced lifetime earnings and productivity. Stem cell transplant from a matched donor is a potentially curative option but is only available to a small fraction of people living with TDT because of the lack of available donors.

About DRI Healthcare Trust

DRI Healthcare is managed by DRI Capital Inc. DRI Healthcare Trust's units are listed and traded on the Toronto Stock Exchange in Canadian dollars under the symbol DHT.UN and in United States dollars under the symbol DHT.U.

We seek Safe Harbor.