Royalty Pharma Acquires Royalty Interest in Cabozantinib From GSK
April 01 2021 - 7:30AM
Royalty Pharma plc (Nasdaq: RPRX) today announced that it has
acquired a royalty interest in the cabozantinib products Cabometyx
and Cometriq from GlaxoSmithKline (GSK) for an upfront payment of
$342 million and up to $50 million in additional payments
contingent on the achievement of regulatory approvals of
cabozantinib for prostate cancer and lung cancer in the U.S. and
Europe.
Cabometyx, a multi-tyrosine kinase inhibitor (TKI), is approved
for the treatment of patients with advanced renal cell carcinoma
(RCC) both as monotherapy and in combination with Bristol Myers
Squibb’s Opdivo (nivolumab) as a first line treatment. Cabometyx is
also approved for hepatocellular carcinoma (HCC) in patients
previously treated with sorafenib. Cometriq is approved for
progressive, metastatic medullary thyroid cancer. Cabometyx and
Cometriq are marketed by Exelixis in the United States, and by
their partner Ipsen in regions outside the U.S. and Japan.
Cabometyx is marketed in Japan by Exelixis’ partner Takeda.
“We are delighted to acquire this royalty stream from GSK,” said
Pablo Legorreta, founder and Chief Executive Officer of Royalty
Pharma. “Cabometyx is a leading TKI for the treatment of advanced
kidney and liver cancer. The recent U.S. approval for the first
line treatment of advanced kidney cancer in combination with Opdivo
represents an important advance for patients to improve treatment
outcomes and quality of life. We are impressed by the broad
development program supporting Cabometyx, which includes additional
studies in RCC, HCC and the potential to expand into prostate and
lung cancer, as well as the strong global commercial
execution.”
GSK is entitled to a 3% royalty on worldwide net sales of
cabozantinib products as a result of its 2002 collaboration with
Exelixis. Under this transaction’s terms, Royalty Pharma has
purchased royalties on cabozantinib products’ net sales in non-U.S.
markets through the full term of the royalty and royalties on net
sales in the U.S. through September 2026, after which U.S.
royalties will remain with GSK.
In 2020, sales of Cabometyx and Cometriq reported by Exelixis
and Ipsen were $742 million and €289 million, respectively.
Goodwin Procter, Dechert and Maiwald acted as legal advisors to
Royalty Pharma on the transaction.
About Royalty Pharma plc
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
not-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 more than 45 commercial products, including AbbVie and
J&J’s Imbruvica, Astellas and Pfizer’s Xtandi, Biogen’s
Tysabri, Gilead’s HIV franchise, Merck’s Januvia, Novartis’
Promacta, and Vertex’s Kalydeco, Orkambi, Symdeko and Trikafta, and
five development-stage product candidates. For more information,
visit www.royaltypharma.com.
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