DRI Healthcare Trust posts record Q2 as $178M Ekterly payment clears and Lumvoa royalties take shape
A $178 million Ekterly monetization payment reached DRI Healthcare Trust (TSE: DHT.UN) on the morning of its Q2 earnings call, ahead of the mid-August window management had projected, freeing capital for a deployment cycle described as higher than usual. The transaction generated a 1.5x return on invested capital and a high-20% internal rate of return. The trust maintained its expectation of completing at least one new deal in the second half of 2026 and expects to begin collecting royalties from Lumvoa, its newly FDA-approved thyroid eye disease asset, starting in Q3.
Key takeaways
- DRI Healthcare Trust received a $178 million Ekterly monetization payment on the morning of its Q2 earnings call, ahead of its projected mid-August window, generating a 1.5x return on invested capital and a high-20% internal rate of return.
- Q2 total income rose 13% year over year to $50.1 million and adjusted EBITDA jumped 40% to $42.6 million, lifting the margin to 92% from 76% a year earlier.
- The FDA approved Lumvoa for thyroid eye disease on June 26, triggering a $75 million payment to Viridian, with royalties expected to begin in Q3 on a one-quarter lag.
- ORSERDU was the quarter's standout, with royalty receipts up 29% year over year to $16.6 million, and DRI expects to recoup its ORSERDU-2 investment in Q3.
- The trust declared a quarterly distribution of $0.11 per unit, payable October 20 to unitholders of record as of September 30, and remains on track for the high end of its 2026 adjusted EBITDA guidance.
A $178 million Ekterly monetization payment reached DRI Healthcare Trust (TSE: DHT.UN) on the morning of its Q2 earnings call, ahead of the mid-August window management had projected, freeing capital for a deployment cycle described as higher than usual. The transaction generated a 1.5x return on invested capital and a high-20% internal rate of return. The trust maintained its expectation of completing at least one new deal in the second half of 2026 and expects to begin collecting royalties from Lumvoa, its newly FDA-approved thyroid eye disease asset, starting in Q3.
Q2 by the numbers
Total income rose 13% year over year to $50.1 million, with royalty income up 8% to $48.2 million. That figure included a $450,000 Xenpozyme milestone payment; excluding milestones, royalty income grew 7%. Cash receipts increased 16% to $46.5 million, supported in part by a $3.7 million rise in Ozurdex receipts tied to European sales growth.
Adjusted EBITDA jumped 40% to $42.6 million, lifting the margin to 92% from 76% in the second quarter of 2025. Chief Executive Officer Ali Hedayat said the margin benefited from higher-than-expected cash receipts, which carry high incremental margins, and favorable timing on planned reinvestments in personnel and technology. Adjusted cash earnings per unit came to $0.56. The trust declared a quarterly distribution of $0.11 per unit, payable October 20 to unitholders of record as of September 30.
Portfolio: what moved the print
Chief Investment Officer Navin Jacob flagged ORSERDU as the quarter's standout contributor: royalty receipts rose 29% year over year to $16.6 million on European sales momentum, and DRI expects to recoup its initial ORSERDU-2 investment in Q3, ahead of original expectations. CASGEVY, which received FDA approval for patients aged two and older with severe sickle cell disease or transfusion-dependent beta thalassemia, posted $76 million in second-quarter sales at Vertex and is tracking one to two years ahead of DRI's original launch projections. VONJO cash receipts rose 11% year over year, and Sanofi reported $74 million in worldwide Xenpozyme sales, both ahead of DRI's expectations.
Working the other direction: a $600,000 decline in IMIDUR receipts on lower sales volumes and a $500,000 drop in Zytiga receipts following generic entry in Europe.
What to watch: Lumvoa's ramp to 2027
The FDA approved Lumvoa (formerly veligrotug) on June 26 for thyroid eye disease. Approval triggered a $75 million payment to Viridian, partly funded through DRI's acquisition credit facility. Royalties are expected to begin in Q3, collected on a one-quarter lag. Jacob said Lumvoa is priced at parity with TEPEZZA on a per-course basis, and Viridian expects six to nine months to achieve broad U.S. patient access. Revenue becomes more meaningful in 2027, after a permanent J-code anticipated in the first quarter of that year.
As of June 30, DRI held $55.2 million in cash, $54.7 million in royalty receivables, and $520 million available under bank facilities. Hedayat said the trust remains on track for the high end of its 2026 adjusted EBITDA guidance, even after removing Ekterly royalty receipts from the forward estimate.
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Filed by the newsroom of MarketPR on August 11, 2026. Source: finance.yahoo.com. Indicative figures are not investment advice.