Royalty Pharma Acquires Royalty Interest in Gavreto From Blueprint Medicines for up to $340 Million
June 30 2022 - 7:30AM
Royalty Pharma plc (Nasdaq: RPRX) today announced that it has
acquired an ex-U.S. royalty interest in Gavreto (pralsetinib) from
Blueprint Medicines (Nasdaq: BPMC) for up to $340 million,
consisting of $175 million upfront and up to $165 million in
potential sales-based milestones.
Gavreto, marketed by Roche in certain markets outside the United
States and Greater China, is a once-daily rearranged during
transfection (RET) targeted therapy approved in Europe in November
2021 for the treatment of certain RET-altered non-small cell lung
cancers (NSCLC). Additionally, Gavreto has been submitted for
marketing approval for thyroid cancers in Europe with a decision
expected in the second half of 2022.
RET activating fusions and mutations are key molecular drivers
in multiple cancers and can be identified using diagnostic tests,
including next-generation sequencing. RET fusions are implicated in
approximately 1% to 2% of patients with NSCLC, 10% to 20% of
patients with papillary thyroid cancer (PTC) and 90% of patients
with advanced medullary thyroid cancer (MTC).
“We are pleased to partner with Blueprint and help advance their
innovative precision therapy pipeline for the benefit of patients
worldwide,” said Pablo Legorreta, Royalty Pharma’s founder and
Chief Executive Officer. “Precision therapies continue to transform
the treatment paradigm in oncology and acquiring a royalty on
Gavreto aligns with our strategy of investing in differentiated
therapies that address unmet medical needs. Gavreto has shown
consistent outcomes with deep and durable responses across several
RET-altered cancers, and we look forward to its clinical
development in additional tumor types and earlier-stage
patients.”
"We are thrilled to establish this partnership with Royalty
Pharma, a leader in funding innovation,” said Kate Haviland, Chief
Executive Officer of Blueprint Medicines. “Royalty Pharma is known
to invest in transformative medicines, and their investment in
Gavreto reinforces our confidence in its future. Further, with a
strengthened balance sheet, we can accelerate our strategic plans
by expanding clinical development across our pipeline of precision
medicines and pursuing important business development
opportunities.”
Blueprint was entitled to a tiered royalty of high-teens to
mid-twenties on Gavreto annual sales outside the United States,
excluding China, through a 2020 global collaboration with Roche.
Royalty Pharma is purchasing the ex-U.S. royalty payable by Roche
through its full term, which is estimated to be through 2036 to
2040.
Advisors
Gibson Dunn, Maiwald and Kawaguti acted as legal
advisors to Royalty Pharma.
About Royalty Pharma
Founded in 1996, Royalty Pharma is the largest buyer of
biopharmaceutical royalties and a leading funder of innovation
across the biopharmaceutical industry, collaborating with
innovators from academic institutions, research hospitals and
non-for-profits through small and mid-cap biotechnology companies
to leading global pharmaceutical companies. Royalty Pharma has
assembled a portfolio of royalties which entitles it to payments
based directly on the top-line sales of many of the industry’s
leading therapies. Royalty Pharma funds innovation in the
biopharmaceutical industry both directly and indirectly - directly
when it partners with companies to co-fund late-stage clinical
trials and new product launches in exchange for future royalties,
and indirectly when it acquires existing royalties from the
original innovators. Royalty Pharma’s current portfolio includes
royalties on around 35 commercial products, including AbbVie and
Johnson & Johnson’s Imbruvica, Johnson & Johnson’s Tremfya,
Astellas’ and Pfizer’s Xtandi, Biogen’s Tysabri, Gilead’s Trodelvy,
Novartis’ Promacta, Vertex’s Kalydeco, Orkambi, Symdeko and
Trikafta, and 10 development-stage therapies.
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Royalty Pharma Investor Relations and
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