Agios Pharmaceuticals secures $1.1B deal

Agios Pharmaceuticals, Inc. has announced a significant financial transaction with Royalty Pharma, with an upfront payment of $905 million upon FDA approval of vorasidenib. Agios will also retain rights to a $200 million milestone payment from Servier upon FDA approval of vorasidenib. In total, Agios stands to receive $1.1 billion in payments upon FDA approval of vorasidenib, with a PDUFA action date set for August 20, 2024.

Under the terms of the agreement, Agios will retain a 3% royalty on annual U.S. net sales greater than $1 billion, while Royalty Pharma will receive the entirety of the 15% royalty on annual U.S. net sales of vorasidenib up to $1 billion, and a 12% royalty on annual U.S. net sales greater than $1 billion.

Brian Goff, CEO of Agios, noted that this transaction provides the company with financial independence to prepare for potential Pyrukynd® (mitapivat) launches in thalassemia and sickle cell disease, and to opportunistically expand their pipeline through both internally and externally discovered assets.

This development comes as Agios continues to advance its clinical pipeline of investigational medicines, with programs in alpha* and beta-thalassemia, sickle cell disease, pediatric PK deficiency, MDS-associated anemia, and phenylketonuria (PKU). Additionally, Agios is advancing a preclinical TMPRSS6 siRNA as a potential treatment for polycythemia vera.

Goldman Sachs & Co. LLC acted as the exclusive financial advisor to Agios, while WilmerHale served as the legal advisor. As a result of these announcements, the company's shares have moved 21.2% on the market, and are now trading at a price of $38.18. If you want to know more, read the company's complete 8-K report here.

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