DRI Healthcare Reports Second Quarter 2026 Results and New Board Appointment

Aug 07 2026 22:00 BST

Delivered record second quarter Total income, Total Cash Receipts and Adjusted EBITDA
Delivered Adjusted EBITDA margin of 92%
Subsequent to the end of the quarter, DRI Healthcare exercised its contractual put option on Ekterly for a total net repurchase price of ~$178M

TORONTO , Aug. 7, 2026 /CNW/ -- DRI Healthcare Trust (TSX: DHT.UN) (TSX: DHT.U) ("DRI Healthcare") today announced its financial results for the quarter ended June 30, 2026. DRI Healthcare's second quarter 2026 financial statements and Management's Discussion & Analysis ("MD&A") have been filed on SEDAR+ (www.sedarplus.ca). All dollar amounts are expressed in U.S. dollars unless otherwise indicated.

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"We are pleased to have delivered another solid quarter, posting record financial performance with double-digit growth across Total income, Cash Receipts and Adjusted EBITDA" said Ali Hedayat, Chief Executive Officer. "We also achieved two important milestones in our pre-approval portfolio. In June, Viridian's veligrotug, now named Lumvoa, received FDA approval. Following quarter-end, we exercised our put option on Ekterly for a total net repurchase price of approximately $178 million, which represents a return of 1.5x our purchase price and a high 20s IRR. Together, the Ekterly and Lumvoa outcomes demonstrate our underwriting team's discipline and specialized expertise across the full cycle of an asset - from regulatory approval to realized returns for Unitholders."

Q2 Highlights

Total income of $50.1 million;
Total Cash Receipts of $46.5 million¹;
Adjusted EBITDA of $42.6 million¹;
Comprehensive earnings of $7.5 million;
Adjusted Cash Earnings per Unit of $0.56 (basic and diluted)^1,²;
Repurchased 89,513 Units under its current and previous Normal Course Issuer Bid plans ("NCIB Plans") at an average price of $11.65, totaling $1.0 million; and
Paid a quarterly cash distribution of $0.11 per Unit on July 20, 2026 to Unitholders of record on June 30, 2026.

Subsequent to Quarter End

DRI Healthcare exercised its contractual put option (the "Put Option") with respect to its royalty participation right in Ekterly, for a total net repurchase price of approximately $178 million;
On July 10, 2026, DRI Healthcare made a milestone payment of $75 million to Viridian, following the U.S. Food and Drug Administration ("FDA") approval of Lumvoa (veligrotug) for the treatment of thyroid eye disease ("TED"); and
Declared a quarterly distribution of $0.11 per Unit in the third quarter of 2026, payable on October 20, 2026 to Unitholders of record on September 30, 2026.

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¹ Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted Cash Earnings (Loss) per Unit is a non-GAAP ratio. These measures are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare's second quarter 2026 MD&A.

² The weighted average number of basic and diluted Units for the purposes of calculating Earnings (Loss) per Unit for the three months ended June 30, 2026 were 55,007,167 Units and 55,374,923 Units, respectively.

Appointment of Dr. Sheila Singh and Dr. Yasir Al-Wakeel to Board of Trustees

DRI Healthcare is pleased to announce that its board of trustees has increased its size by one and appointed Dr. Sheila Singh and Dr. Yasir Al-Wakeel, effective immediately. "We are delighted to welcome Sheila and Yasir to our board. Together, they bring broad experience spanning the biopharmaceutical and finance industry. Their leadership and passion for innovation will be invaluable as we continue to execute our strategy and build DRI Healthcare for the long term" said Ali Hedayat.

Dr. Singh is an internationally recognized neurosurgeon-scientist whose career spans patient care, scientific discovery, translational research, institutional leadership, and biotechnology commercialization. She is the Richard Dimbleby Professor of Cancer Research, Joint Head of the School of Cancer & Pharmaceutical Sciences and Head of the Comprehensive Cancer Centre at King's College London, Professor of Neuro-oncology and Neurosurgery, and a senior strategic advisor to Evelina London Children's Hospital, Guy's and St Thomas' NHS Foundation Trust. Dr. Singh is also Professor of Surgery and Biochemistry (part time) at McMaster University, where she was also the founding Director of the Centre for Discovery in Cancer Research (CDCR).

Dr. Al-Wakeel is a seasoned biotechnology executive and board member with a track record of building and leading life sciences companies from early stage through commercialization. He currently serves as Chief Executive Officer of Vesalius Therapeutics and as a CEO-Partner at Flagship Pioneering. Earlier in his career, he held senior positions as a biotech equity analyst and in corporate finance, where he led or advised on more than US$30 billion in strategic and financial transactions. A physician-scientist by training, he also held clinical and academic medical posts in the United Kingdom. This combination of clinical, financial, and operational experience positions him to guide biotechnology companies through the full arc of scaling a business and bringing medicines to patients.

DRI Healthcare also announced that Kevin Layden will be resigning from the board of trustees in order to focus on his full-time responsibilities. Mr. Hedayat also noted, "We would like to thank Kevin for his significant contributions to the board since joining in 2021. His perspective and insights have been particularly valuable in assisting DRI Healthcare."

Financial Highlights

	Three months ended		Six months ended
(thousands of U.S. dollars, except per Unit amounts)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Total income	50,077	44,130	98,721	88,158
Amortization of intangible royalty assets	25,464	24,751	50,412	49,496
Management fees	--	2,657	--	6,733
Performance fees	--	--	--	533
Other expenses	15,398	15,375	32,604	31,801
Gain (loss) on debt refinancing	--	(971)	(9,794)	(971)
Net unrealized gain (loss) on derivative instruments	(1,765)	--	(1,512)	--
Net unrealized gain (loss) on foreign exchange remeasurement	1,603	--	3,267	--
Net earnings (loss) before tax	9,053	376	7,666	(1,376)
Income tax recovery (expense)	(3,031)	--	(2,628)	--
Net earnings (loss)	6,022	376	5,038	(1,376)
Net unrealized gain (loss) on derivative instruments	1,514	(1,076)	2,957	(1,156)
Comprehensive earnings (loss)	7,536	(700)	7,995	(2,532)
Net earnings (loss) per Unit – basic	0.11	0.01	0.09	(0.02)
Net earnings (loss) per Unit – diluted	0.11	0.01	0.09	(0.02)
Total Cash Receipts¹	46,455	40,152	104,811	102,142
Adjusted EBITDA¹	42,564	30,372	95,315	82,031
Adjusted EBITDA Margin¹	92 %	76 %	91 %	80 %
Adjusted Cash Earnings per Unit – basic¹	0.56	0.51	1.24	0.95
Adjusted Cash Earnings per Unit – diluted¹	0.56	0.51	1.24	0.95
Weighted average number of Units – basic	55,007,167	55,685,363	55,023,166	55,743,876
Weighted average number of Units – diluted	55,374,923	55,685,363	55,244,232	55,743,876

Asset Performance

As at June 30, 2026, DRI Healthcare's portfolio included 28 royalty streams on 22 products that address a variety of therapeutic areas, such as oncology, neurology, ophthalmology, endocrinology, hematology, dermatology, lysosomal storage disorders ("LSD") and immunology. On June 30, 2026, the intangible royalty asset portfolio had a book value, net of accumulated amortization and impairments, of $808.9 million, which during the three and six months ended June 30, 2026 generated Total Cash Royalty Receipts¹ of $46.5 million and $104.8 million, respectively, and royalty income of $48.2 million and $94.8 million, respectively. On June 30, 2026, the financial royalty assets had a book value of $55.6 million, which during the three and six months ended June 30, 2026 generated a change in its fair value of $1.7 million and $3.3 million, respectively.

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¹Total Cash Receipts and Adjusted EBITDA are non-GAAP financial measures. Adjusted EBITDA Margin and Adjusted Cash Earnings (Loss) per Unit are non-GAAP ratios. These measures and ratios are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare's second quarter 2026 MD&A.

Portfolio

(thousands of U.S. dollars)			Cash Receipts
			Three months ended		Six months ended
Royalty Asset	Therapeutic Area	Primary Marketer(s)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Casgevy	Hematology	Vertex Pharmaceuticals	--	--	5,000	5,000
Ekterly	Immunology	KalVista	2,163	--	3,992	--
Empaveli/Syfovre	Hematology/Ophthalmology	Apellis, Sobi	149	147	1,311	1,272
Eylea I	Ophthalmology	Regeneron, Bayer, Santen	1,022	1,158	2,139	2,680
Eylea II	Ophthalmology	Regeneron, Bayer, Santen	215	248	453	579
Omidria	Ophthalmology	Rayner Surgical	8,347	8,993	17,031	16,987
Oracea	Dermatology	Galderma	890	1,046	1,851	2,580
Orserdu I	Oncology	Menarini	8,279	6,410	19,879	14,287
Orserdu I – milestone	Oncology	Menarini	--	--	5,000	633
Orserdu II	Oncology	Menarini	8,279	6,409	18,581	23,806
Orserdu II – milestone	Oncology	Menarini	--	--	--	5,523
Rydapt	Oncology	Novartis	563	777	1,356	1,936
Spinraza	Neurology	Biogen	3,717	3,781	7,351	7,743
Vonjo I	Hematology	Sobi	2,879	2,553	5,988	5,648
Vonjo II	Hematology	Sobi	608	576	1,302	1,351
Xenpozyme	Lysosomal Storage Disorder	Sanofi	2,879	1,913	2,879	1,913
Xenpozyme - milestone	Lysosomal Storage Disorder	Sanofi	450	--	450	--
Xolair	Immunology	Roche, Novartis	2,698	2,162	5,197	4,535
Zejula	Oncology	GSK	993	1,103	2,010	2,052
Zytiga	Oncology	Johnson & Johnson	1,762	2,230	1,762	2,230
Other Products¹	Various	Various	562	646	1,279	1,387
Total Cash Receipts, Normalized Cash Receipts and Cash Royalty Receipts²			46,455	40,152	104,811	102,142

Liquidity and Capital

As at June 30, 2026, DRI Healthcare had cash and cash equivalents of $55.2 million.

As at June 30, 2026, DRI Healthcare's long-term debt of $372.3 million was composed of i) $29.1 million on the long-term portion of its credit facility; (ii) $31.0 million of preferred securities; (iii) $64.8 million convertible debentures; and iv) $247.4 million on its senior notes.

As at June 30, 2026, DRI Healthcare had 54,963,322 Units issued and outstanding.

Distributions

On May 14, 2026, the board of trustees of DRI Healthcare declared a quarterly cash distribution of $0.11 per Unit for the second quarter of 2026, which was paid on July 20, 2026 to Unitholders of record as of June 30, 2026.

Today, the board of trustees of DRI Healthcare declared a quarterly cash distribution of $0.11 per Unit for the third quarter of 2026, payable on October 20, 2026, to Unitholders of record as of September 30, 2026.

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¹ Other Products includes royalty income from certain other intangible royalty assets as well as intangible royalty assets which are fully amortized and, where applicable, the entitlements to which have generally expired. Comparative figures for royalty assets Natpara are included in Other Products.

² Total Cash Receipts, Normalized Cash Receipts and Cash Royalty Receipts are non-GAAP financial measures. These measures are not standardized measures under IFRS and might not be comparable to similar financial measures disclosed by other issuers. The reconciliation of these measures can be found later in this news release and in DRI Healthcare's second quarter 2026 MD&A.

Ekterly Disposition

Subsequent to June 30, 2026, DRI Healthcare exercised its Put Option with respect to its royalty participation right in Ekterly, for a total net repurchase price of approximately $178 million. The Put Option has been exercised following the acquisition of KalVista by Chiesi Group on June 11, 2026. Subject to the terms of the royalty agreement, DRI Healthcare expects to receive payment no later than mid-August 2026. The Ekterly royalty purchase agreement will terminate upon receipt of the put price.

Lumvoa (veligrotug) and Elegrobart Royalty Transaction

On June 26, 2026, the U.S. FDA approved Lumvoa (veligrotug) for the treatment of TED. In connection with this approval, DRI Healthcare recognized a milestone payable of $75 million to Viridian during the three months ended June 30, 2026, which reduced DRI Healthcare's maximum remaining potential milestone obligation to $130 million.

On July 10, 2026, DRI Healthcare made a milestone payment of $75 million to Viridian pursuant the term of its existing royalty agreement. On July 9, 2026, DRI Healthcare drew $50 million from its acquisition credit facility to partially fund the payment.

Second Quarter 2026 Conference Call & Webcast

As previously announced, management will hold a conference call on Monday, August 10, 2026 at 8:00 a.m. (ET) to review DRI Healthcare's second quarter 2026 results. Interested parties can join the call by dialing 1-888-699-1199 or 416-945-7677 approximately 15 minutes prior to the call to secure a line.

A live webcast of the conference call, including a slide presentation, will be available at https://app.webinar.net/VvwRZwAzN13. Please connect at least 15 minutes prior to the conference call to ensure adequate time for any software download that may be required to join the webcast. The webcast will be archived on DRI Healthcare's website at drihealthcare.com/investors following the conference call date.

Non-GAAP Financial Measures

The reconciliations of non-GAAP financial measures and non-GAAP ratios for the three months ended June 30, 2026 and June 30, 2025 to the most directly comparable measures calculated in accordance with IFRS are presented below.

Total Cash Receipts, Normalized Total Cash Receipts and Total Cash Royalty Receipts

Total Cash Receipts refers to Total Cash Royalty Receipts plus cash receipts from all products. Total Cash Receipts includes cash receipts from interest as well as non-recurring cash receipts.

Total Cash Royalty Receipts refers to aggregate cash royalty receipts and milestone royalty receipts from our portfolio of royalty assets and forms part of Total Cash Receipts. Because of the lag between when we record royalty income and receive the corresponding cash payments on our royalties and milestones, we believe Total Cash Receipts and Total Cash Royalty Receipts are useful measures when evaluating our operations, as they represent actual cash generated in respect of all royalty assets held during a period. We also present Normalized Total Cash Receipts, which refers to Total Cash Receipts adjusted to remove cash receipts that are not expected to recur in the normal course of our operations. We believe that Normalized Total Cash Receipts will assist readers in evaluating the period-over-period performance of our royalty portfolio since Normalized Total Cash Receipts only includes cash receipts generated by royalties and other amounts payable pursuant to the terms of our royalty assets. There were no adjustments required to normalize cash receipts for the three and six months ended June 30, 2026 and 2025.

	Three months ended		Six months ended
(thousands of U.S. dollars)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Total income	50,077	44,130	98,721	88,158
[−] Other interest income	(188)	(356)	(411)	(654)
[−] Net (gain) loss on marketable securities	--	115	(168)	(1,420)
[+] Royalties receivable, beginning of period	54,306	45,006	59,708	62,362
[−] Royalties receivable, end of period	(54,723)	(49,647)	(54,723)	(49,647)
[+] Financial royalty assets, beginning of period	53,930	55,088	57,276	57,527
[−] Financial royalty assets, end of period	(55,592)	(54,184)	(55,592)	(54,184)
[−] Non-cash royalty income¹	(1,355)	--	--	--
[=] Total Cash Receipts, Royalty Cash Receipts and Normalized Cash Receipts	46,455	40,152	104,811	102,142

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¹ Non-cash royalty income relates to Eylea I&II royalties that were deposited into an escrow account but had not yet been transferred to the operation account as of March 31, 2026. The royalties were received on June 4, 2026.

Adjusted EBITDA and Adjusted EBITDA Margin

We believe Adjusted EBITDA provides meaningful information about our operating cash flows as it eliminates the effects of other noncash expenses and accruals and income and expenses not expected to recur that have been recorded on the interim condensed consolidated statements of net earnings (loss) and comprehensive earnings (loss). We refer to EBITDA when reconciling our net earnings (loss) and comprehensive earnings (loss) to Adjusted EBITDA, but we do not use EBITDA as a measure of our performance.

We believe that Adjusted EBITDA Margin is a useful supplemental measure to demonstrate the operating efficiency of our business on a cash basis.

	Three months ended		Six months ended
(thousands of U.S. dollars)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Comprehensive earnings (loss)	7,536	(700)	7,995	(2,532)
[+] Amortization of intangible royalty assets	25,464	24,751	50,412	49,496
[+] Depreciation of fixed assets and other intangible assets¹	89	--	177	--
[+] Income tax expense	3,031	--	2,628	--
[−] Other interest income	(188)	(356)	(411)	(654)
[+] Interest expense	9,257	9,028	19,662	18,635
[=] EBITDA	45,189	32,723	80,463	64,945
[+] Royalties receivable, beginning of period	54,306	45,006	59,708	62,362
[−] Royalties receivable, end of period	(54,723)	(49,647)	(54,723)	(49,647)
[−] Performance fees payable, beginning of period	--	(2,198)	--	(1,665)
[+] Performance fees payable, end of period	--	--	--	--
[+] Financial royalty assets, beginning of period	53,930	55,088	57,276	57,527
[−] Financial royalty assets, end of period	(55,592)	(54,184)	(55,592)	(54,184)
[+] Unrealized (gain) loss on marketable securities²	--	115	1,261	(1,420)
[+] Unit-based compensation	605	970	1,273	1,430
[+] Board of trustees' unit-based compensation³	201	452	567	556
[+] (Gain) loss on debt refinancing	--	971	9,794	971
[−] Net (gain) loss on foreign exchange remeasurement	(1,603)	--	(3,267)	--
[+] Net unrealized (gain) loss on derivative instruments	251	1,076	(1,445)	1,156
[=] Adjusted EBITDA	42,564	30,372	95,315	82,031
[÷] Normalized Total Cash Receipts	46,455	40,152	104,811	102,142
[=] Adjusted EBITDA Margin	92 %	76 %	91 %	80 %

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¹ Included in general and administrative expenses are non-cash expenses related to the depreciation of fixed assets and amortization of other intangible assets.

² Unrealized gain (loss) on marketable securities is related to the changes in fair value of the marketable securities prior to realizing gains/losses upon disposition.

³ Certain members of the board of trustees of DRI Healthcare elected to be compensated fully or partially in Deferred Units ("DUs") under DRI Healthcare's Omnibus Equity Incentive Plan, as described on page 12 of DRI Healthcare's second quarter 2026 MD&A.

Adjusted Cash Earnings per Unit

We believe that Adjusted Cash Earnings per Unit provides meaningful information about our performance as it provides a measure of the cash generated by our assets on a per Unit basis, excluding cash earnings that are not expected to recur.

The calculation of Adjusted Cash Earnings per Unit is presented below.

	Three months ended		Six months ended
(thousands of U.S. dollars, except per Unit amounts)	June 30, 2026	June 30, 2025	June 30, 2026	June 30, 2025
Comprehensive earnings (loss)	7,536	(700)	7,995	(2,532)
[+] Amortization of intangible royalty assets	25,464	24,751	50,412	49,496
[+] Depreciation of fixed assets and other intangible assets¹	89	--	177	--
[+] Unrealized (gain) loss on marketable securities²	--	115	1,261	(1,420)
[+] Unit-based compensation	605	970	1,273	1,430
[+] Board of trustees' unit-based compensation³	201	452	567	556
[−] Change in fair value of financial royalty assets	(1,662)	904	(3,316)	(1,657)
[+] Cash receipts on financial royalty assets	--	--	5,000	5,000
[+] (Gain) loss on debt refinancing	--	971	9,794	971
[−] Net (gain) loss on foreign exchange remeasurement	(1,603)	--	(3,267)	--
[+] Net unrealized (gain) loss on derivative instruments	251	1,076	(1,445)	1,156
[=] Adjusted Cash Earnings (Loss)	30,881	28,539	68,451	53,000
Adjusted Cash Earnings (Loss) per Unit – basic	0.56	0.51	1.24	0.95
Adjusted Cash Earnings (Loss) per Unit – diluted	0.56	0.51	1.24	0.95
Weighted average number of Units – basic	55,007,167	55,685,363	55,023,166	55,743,876
Weighted average number of Units – diluted	55,374,923	55,685,363	55,244,232	55,743,876

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¹ Included in general and administrative expenses are non-cash expenses related to the depreciation of fixed assets and amortization of other intangible assets.

² Unrealized gain (loss) on marketable securities is related to the changes in fair value of the marketable securities prior to realizing gains/losses upon disposition.

³ Certain members of the board of trustees of DRI Healthcare elected to be compensated fully or partially in DUs under DRI Healthcare's Omnibus Equity Incentive Plan, as described on page 12 of DRI Healthcare's second quarter 2026 MD&A.

About DRI Healthcare

DRI Healthcare is a pioneer in global pharmaceutical royalty monetization. Since our founding in 1989, we have deployed more than $3.0 billion, acquiring more than 75 royalties on 50-plus drugs, including Ekterly, Eylea, Keytruda, Lumvoa (veligrotug), Orserdu, Remicade, Spinraza, Stelara, Vonjo and Zytiga. DRI Healthcare's units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol "DHT.UN" and in U.S. dollars under the symbol "DHT.U". To learn more, visit drihealthcare.com or follow us on LinkedIn.

Caution concerning forward-looking statements

This news release may contain forward-looking information within the meaning of applicable securities legislation. Forward-looking information can generally be identified by the use of words such as "expect", "continue", "anticipate", "intend", "aim", "plan", "believe", "budget", "estimate", "forecast", "foresee", "close to", "target" or negative versions thereof and similar expressions. Some of the specific forward-looking information in this news release may include, among other things, statements regarding the timing and receipt of the put price, DRI Healthcare's ability to execute on its strategy, the potential and timing of royalty payments, and the anticipated royalty income and anticipated sales of the products underlying such royalties. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond DRI Healthcare's control that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. These risks and uncertainties include, but are not limited to, those risks and uncertainties that are disclosed in DRI Healthcare's most recent annual information form and under "Risk Factors" in DRI Healthcare'sManagement's Discussion and Analysis. The anticipated royalty terms for products in our portfolio may be shorter than the period of patent protection for the applicable product, depending on many factors, including the entry of generic drugs into the marketplace and competition, all of which are outside our control. No assurance can be given that these are all the factors that could cause actual results to vary materially from the forward-looking statements in this news release. You should not put undue reliance on forward-looking statements. No assurances can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do occur, the actual results, performance or achievements of DRI Healthcare could differ materially from the results expressed in, or implied by, any forward-looking statements. Certain assumptions underlying the forward-looking information in this news release include: DRI Healthcare's assumptions regarding demand and growth in pharmaceutical sales, R&D and opportunities for royalty investing; the competitive environment in which DRI Healthcare operates; DRI Healthcare's ability to implement its growth strategies; DRI Healthcare's ability to obtain financing and maintain its existing financing on acceptable terms; DRI Healthcare's ability to maintain good business relationships with marketers and other industry partners; timely receipt of cash royalty receipts; expectations regarding the duration of royalties; DRI Healthcare's ability to keep pace with changing consumer preferences; the absence of material adverse changes in DRI Healthcare's industry or the global economy; currency exchange and interest rates; the impact of competition; the changes and trends in DRI Healthcare's industry or the global economy; and stability in laws, rules, regulations and global standards in the pharmaceutical industry. All forward-looking information in this news release speaks as of the date of this news release. DRI Healthcare does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise except as required by law. Additional information about these assumptions and risks and uncertainties is contained in DRI Healthcare's filings with securities regulators, including its latest annual information form and Management's Discussion and Analysis. These filings are also available at DRI Healthcare's website at drihealthcare.com/investors.

For further information, please contact:

Bill Zhang
Head of Investor Relations
ir@drihealthcare.com

SOURCE DRI Healthcare Trust