Mr. Behzad Khosrowshahi reports

DRI HEALTHCARE TRUST ANNOUNCES THE EXPANSION OF ITS ROYALTY ENTITLEMENT ON THE US NET SALES OF OMIDRIA, UPDATES DEPLOYMENT AND CAGR GUIDANCE

DRI Healthcare Trust has expanded its interest in royalties on the U.S. net sales of Omidria by amending its existing agreement with Omeros Corp. for $115-million (U.S.) on closing and up to $55-million (U.S.) in potential sales-based milestone payments. As a result, the Trust will now receive 100 per cent of Omeros's royalties on the U.S. net sales of Omidria through Dec. 31, 2031.

Omidria was approved by the U.S. Food and Drug Administration in May, 2014, and the European Medicines Agency in July, 2015, for intracameral use during cataract surgery or intraocular lens replacement to maintain pupil dilation and reduce postoperative pain. Omidria was launched in the United States in 2014 but has yet to be launched in the European Union. Omidria is marketed by Rayner Surgical, one of the world's leaders in the field of cataract surgery with operations in over 80 countries worldwide.

Increased capital deployment target and CAGR (compound annual growth rate) guidance

DRI Healthcare is increasing its deployment target for the five years ending 2025 to over $1.25-billion (U.S.), up from $850-million (U.S.) to $900-million (U.S.). Since its initial public offering, the trust has deployed $881-million (U.S.) with potential milestones up to $106-million (U.S.), for total potential deployment of up to $987-million (U.S.) in 12 transactions. DRI Healthcare continues to see significant opportunities in the market with a robust pipeline of over $3-billion (U.S.) in possible transactions in the near term to medium term. As a result of the Omidria transaction, DRI Healthcare is increasing its long-term royalty income CAGR guidance (2022 through 2030) to mid to high single digits, up from the prior guidance of low single digits, excluding any new transactions.

"We are excited to increase our royalty entitlement on Omidria as this deal not only generates immediate accretive value for unitholders but also gives us exposure to an important non-opioid pain drug that provides an alternative to physicians combating the ongoing opioid epidemic," said Behzad Khosrowshahi, chief executive officer of the trust. "Bolstering our balance sheet over the recent months with equity raises and the expansion of our credit facilities laid the foundation for us to continue the strong execution we saw in 2023. With this transaction, we now have upside exposure to Omidria, which will have a significant impact on both our near- and long-term cash flow profile. We are updating our guidance to reflect the next phase of growth for DRI Healthcare, including a new deployment target and increased CAGR guidance."

Speaking on behalf of the investment manager, Chief investment officer Navin Jacob commented: "This transaction highlights DRI Healthcare's focus on creating winning solutions for our partners while remaining steadfast in our mission to deliver accretive returns to unitholders. We value our long-term partnership with Omeros and were happy to once again work with the management team to address their business and financial needs. Omidria's separate payment status established in 2021 coupled with the Consolidated Appropriations Act 2023 (CAA'23) provides long-term clarity on reimbursement for the product. We believe CAA'23 will provide reimbursement for Omidria in the hospital outpatient department setting starting in 2025, and, as such, we anticipate Omidria sales to continue growing in the coming years. We would like to thank the Omeros team for working with us to complete this transaction."

The transaction entitles DRI Healthcare to Omeros's entire 30-per-cent royalty on the U.S. net sales of Omidria through Dec. 31, 2031. DRI Healthcare is entitled to receive monthly royalty payments on a two-month lag based on sales beginning Nov. 1, 2023, with its first payment to be received in January, 2024. Omeros is also eligible to receive from DRI two milestone payments, each up to $27.5-million, payable in January, 2026, and January, 2028, respectively, based on the achievement of certain Omidria net sales thresholds.

About DRI Healthcare Trust

DRI Healthcare is managed by DRI Capital Inc., the pioneer in global pharmaceutical royalty monetization with a more than 30-year history of accelerating innovation by providing capital to inventors, academic institutions and biopharmaceutical companies. Since its founding in 1989, DRI Capital has deployed more than $3-billion (U.S.), acquiring more than 70 royalties on more than 45 drugs, including Eylea, Keytruda, Orserdu, Spinraza, Stelara, Vonjo, Zejula 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.

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