NEW YORK – Agios Pharmaceuticals on Tuesday said it has agreed to sell rights to its 15 percent royalty on potential US net sales of Servier's vorasidenib to Royalty Pharma.
Under the terms of the agreement, Agios will receive a $905 million upfront payment upon US approval of the drug as a treatment of IDH-mutant diffuse glioma in exchange for the entirety of its 15 percent royalty on annual US net sales up to $1 billion and a 12 percent royalty on sales greater than $1 billion. Agios will retain a 3 percent royalty on US net sales of the drug greater than $1 billion.
Cambridge, Massachusetts-based Agios sold its oncology portfolio, including vorasidenib, to Servier in 2021. As part of that sale, Servier agreed to pay Agios $200 million upon approval of vorasidenib by the US Food and Drug Administration and a 15 percent royalty on US net sales. Agios retains rights to the approval milestone payment. Servier has applied for FDA approval, and the agency is expected to make a decision on that application by Aug. 20, 2024. If approved, vorasidenib will be the first targeted therapy for IDH-mutant diffuse glioma.
Agios will use proceeds from the agreement with Royalty to prepare for potential launches of its pyruvate kinase activator Pyrukynd (mitapivat) as a treatment for thalassemia and sickle cell disease, and to expand its pipeline through internally and externally discovered assets.