Agios investors paying nothing for Pyrukynd, says Cantor Fitzgerald

Cantor Fitzgerald thinks U.S approval around the August 20 FDA action date for vorasidenib is “nearly assured” for given the drug has breakthrough designation in glioma, a tumor type of high unmet need, and led to a more than doubling of progression free survival in a Phase 3 trial. Investors had been underestimating the value of vorasidenib royalties to Agios Pharmaceuticals, the analyst tells investors in a research note after the company sold its 15% U.S. royalty interest in Servier’s vorasidenib to Royalty Pharma for $905M. . Agios will keep the $200M approval milestone, and will be entitled to a 3% royalty on annual U.S. sales above $1B, the firm notes. With Agios shares at a market cap of just below $1.8B, Cantor believes investors are paying nothing for Pyrukynd. Cantor believes Pyrukynd “could easily” become a $1B product and it recommends investors “take advantage of this market inefficiency.” It keeps an Overweight rating on the shares.