PharmaShares Advisors LLC has partnered with Syntax LLC to develop the Syntax PharmaShares AbbVie – Humira Paired Index, the first index that tracks individual commercialized pharmaceutical products distinct from the overall performance of a sponsoring pharmaceutical company’s stock. The index methodology paves the way for an entirely new suite of investable products.
To access this index theme, PharmaShares plans to launch a private platform for investors to define and price synthetic royalty contracts with its partner Raptor Trading Systems, Inc.
“Historically, absent a company selling a royalty interest, an investor’s means to gain exposure to the success of an individual pharmaceutical drug product was through equity in the pharmaceutical company selling the therapeutic product. An equity position reflects a mix of commercialized pharmaceutical products and pipeline of products, as well as corporation actions such as M&A,” said Jon C. Ohrn, Founder of PharmaShares Advisors, LLC. “The Syntax PharmaShares AbbVie – Humira Paired Index represents a breakthrough that will allow the creation of investable synthetic royalty products enabling investors to gain exposure to changes in net sales of specific commercial pharmaceutical products without taking exclusive equity exposure to the company manufacturing or distributing the pharmaceutical product.”
“Raptor is excited to partner with PharmaShares and Syntax on these innovative and unique opportunities. The initial industry response to the PharmaShares offerings has been extremely positive with significant interest across its planned private and public market offerings,” according to Raptor Trading’s Head of Sales, Sunny Kim.
The Syntax PharmaShares AbbVie – Humira paired index is the first index in the Syntax PharmaShares Stock & Lead Product Paired Index Series, which measures the paired return of an investment split between the sponsoring pharmaceutical company stock and the performance of the lead pharmaceutical product of the company as measured by global net sales. The index is calculated by a 50/50 weighting of the company stock price performance (including proportionate dividends) and the change in net sales of the specified lead drug product. The index rebalances each quarter after sales data is published.
“As the first indices of their kind, the PharmaShares index series illustrate the continuing opportunity for innovation in indexing,” said Patrick Shaddow, CEO of Syntax. “We’re excited to partner with PharmaShares to develop index solutions that can form the foundation for innovative investment products.”
Each index in the Syntax PharmaShares Stock & Lead Product Index Series will focus on a single pharmaceutical company and its lead product. The first index in the series focuses on AbbVie and its lead product, Humira, the world’s best-selling pharmaceutical product each year from 2012 through 2020. The paired indexes will allow investors to track the relative performance of equity and net product sales evolution (after successful launch, through peak sales and eventually decline of sales). PharmaShares and Syntax have signed a collaboration agreement to publish multiple single stock / drug indices based upon this theme.
For more information on the index:
https://www.syntaxdata.com/indices/AHP
About Syntax LLC
Syntax LLC is a financial data and technology company that codifies business models into a relational system we call Affinity Data™. Syntax operates through three segments: Affinity Data™, Syntax Direct™, and Syntax Indices™. Using its patented FIS® technology inspired by systems sciences, the Affinity Data™ segment offers the most comprehensive, granular, and accurate product line revenue data available on the market. The Syntax Direct™ segment then uses this abundance of data to facilitate the near instantaneous creation and ongoing management of direct indexing solutions and rules-based equity portfolios through a fully automated platform. The Syntax Indices™ segment offers customized and proprietary indices, including core global benchmarks and micro- and macro-thematic, smart beta, defined outcome, and target volatility indices. These indices are foundational for a range of financial products, such as ETFs, UITs, and structured products. Learn more at www.syntaxdata.com.
About PharmaShares Advisors LLC
PharmaShares Advisors, LLC was formed in 2020 with the mission of providing institutional investors with a new method of investing in the pharmaceutical industry and pharmaceutical drug royalty and synthetic royalty contacts. PharmaShares plans to offer exchange traded products and an electronic platform to identify potential royalty and synthetic royalty counterparties. The focus of each PharmaShares product will be direct exposure to the performance of a pharmaceutical drug product, as measured by net sale, earnings, or other objective form of measurement. PharmaShares has filed a draft registration statement with the SEC on a proposed new exchange traded product, https://www.sec.gov/Archives/edgar/data/1778854/000109690622000154/filename1.htm, and has a patent pending private platform for admitted members to locate potential counterparties for pharmaceutical product royalty and synthetic royalty contracts.
About Raptor Trading Systems, Inc.
Raptor Trading Systems is a premier independent provider of managed connectivity, Order Management Systems (OMS), and trading solutions. With a focus on servicing clients across retail, wealth management, and institutional segments, Raptor specializes in offering flexible, high-performance solutions designed to seamlessly integrate systems across diverse asset classes and regions. With a commitment to innovation and excellence, Raptor Trading Systems empowers clients to thrive in the ever-evolving landscape of financial markets. To learn more, visit www.raptortrading.com.
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