- Attractive, precision oncology therapy with long patent duration added to portfolio
- Blueprint Medicines to receive $175 million upfront and $165 million in potential milestone payments
Royalty Pharma plc (Nasdaq: RPRX) today announced that it has acquired an ex-U.S. royalty interest in Gavreto (pralsetinib) from Blueprint Medicines (Nasdaq: BPMC) for up to $340 million, consisting of $175 million upfront and up to $165 million in potential sales-based milestones.
Gavreto, marketed by Roche in certain markets outside the United States and Greater China, is a once-daily rearranged during transfection (RET) targeted therapy approved in Europe in November 2021 for the treatment of certain RET-altered non-small cell lung cancers (NSCLC). Additionally, Gavreto has been submitted for marketing approval for thyroid cancers in Europe with a decision expected in the second half of 2022.
“We are pleased to partner with Blueprint and help advance their innovative precision therapy pipeline for the benefit of patients worldwide,” said Pablo Legorreta, Royalty Pharma’s founder and Chief Executive Officer. “Precision therapies continue to transform the treatment paradigm in oncology and acquiring a royalty on Gavreto aligns with our strategy of investing in differentiated therapies that address unmet medical needs. Gavreto has shown consistent outcomes with deep and durable responses across several RET-altered cancers, and we look forward to its clinical development in additional tumor types and earlier-stage patients.”
“We are thrilled to establish this partnership with Royalty Pharma, a leader in funding innovation,” said Kate Haviland, Chief Executive Officer of Blueprint Medicines. “Royalty Pharma is known to invest in transformative medicines, and their investment in Gavreto reinforces our confidence in its future. Further, with a strengthened balance sheet, we can accelerate our strategic plans by expanding clinical development across our pipeline of precision medicines and pursuing important business development opportunities.”
Blueprint was entitled to a tiered royalty of high-teens to mid-twenties on Gavreto annual sales outside the United States, excluding China, through a 2020 global collaboration with Roche. Royalty Pharma is purchasing the ex-U.S. royalty payable by Roche through its full term, which is estimated to be through 2036 to 2040.
Gibson Dunn, Maiwald and Kawaguti acted as legal advisors to Royalty Pharma.
This text is a press release from Royalty Pharma. The full text version of the article can be found here.