Agios Pharmaceuticals announces $905M purchase agreement for vorasidenib royalty

Agios Pharmaceuticals (AGIO) announced that the company has agreed to sell its rights to its 15% royalty on potential U.S. net sales of Servier’s vorasidenib to Royalty Pharma (RPRX). Under the terms of the agreement, Agios will receive an upfront payment of $905M upon approval of vorasidenib by the U.S. Food and Drug Administration and Royalty Pharma will receive the entirety of the 15% royalty on annual U.S. net sales of vorasidenib up to $1B, and a 12% royalty on annual U.S. net sales greater than $1B. Agios will retain a 3% royalty on annual U.S. net sales greater than $1B. Vorasidenib is an oral, selective, highly brain-penetrant dual inhibitor of mutant isocitrate dehydrogenase 1 and 2 enzymes for the treatment of IDH-mutant diffuse glioma. In 2021, Agios completed the sale of its oncology portfolio – including vorasidenib – to Servier. As part of that divestiture, Agios is owed a milestone payment of $200M upon vorasidenib’s approval by the FDA, as well as a 15% royalty on U.S. net sales of vorasidenib. Agios continues to retain the right to the approval milestone from Servier. Servier announced that the FDA has designated a Prescription Drug User Fee Act action date of August 20, 2024.