NEW YORK – Radius Health said on Monday that it will sell a portion of its royalty and commercial milestone rights for the selective estrogen receptor degrader (SERD) Orserdu (elacestrant) to DRI Healthcare Acquisitions for up to $140 million.
Under the terms of the deal, DRI will pay Radius $130 million upfront for a portion of the royalty rights to Orserdu. The SERD is US Food and Drug Administration-approved as a treatment for estrogen receptor-positive, HER2-negative, advanced or metastatic breast cancers harboring ESR1 mutations. Last month, the European Medicines Agency's Committee for Medicinal Products for Human Use recommended the same indication of the drug be approved in Europe.
In addition to the upfront payment, Radius will be eligible to receive an additional $10 million from DRI if Orserdu achieves certain milestones. In 2020, Radius sold Orserdu's global development and commercialization rights to the Menarini Group, and under that deal, Radius can still receive up to $200 million in commercial milestone payments from Menarini.
Radius said in a statement that it plans to use the net proceeds from its deal with DRI to support business development opportunities and focus on its bone health business.