By Michael Dabaie
Royalty Pharma PLC said Thursday it acquired a royalty interest in the cabozantinib products Cabometyx and Cometriq from GlaxoSmithKline for an upfront payment of $342 million and up to $50 million in additional payments.
The company said the additional payments are contingent on regulatory approvals of cabozantinib for prostate cancer and lung cancer in the U.S. and Europe.
Cabometyx is approved for the treatment of patients with advanced renal cell carcinoma both as monotherapy and in combination with Bristol Myers Squibb Co.'s Opdivo as a first line treatment. Cabometyx is also approved for hepatocellular carcinoma in patients previously treated with sorafenib. Cometriq is approved for progressive, metastatic medullary thyroid cancer.
Cabometyx and Cometriq are marketed by Exelixis in the U.S., and by their partner Ipsen in regions outside the U.S. and Japan. Cabometyx is marketed in Japan by Exelixis' partner Takeda Pharmaceutical Co.
GSK is entitled to a 3% royalty on worldwide net sales of cabozantinib products as a result of its 2002 collaboration with Exelixis.
Under this transaction's terms, Royalty Pharma said it has purchased royalties on cabozantinib products' net sales in non-U.S. markets through the full term of the royalty and royalties on net sales in the U.S. through September 2026, after which U.S. royalties will remain with GSK.
In 2020, sales of Cabometyx and Cometriq reported by Exelixis and Ipsen were $742 million and EUR289 million ($339 million), respectively, Royalty said.
Write to Michael Dabaie at email@example.com
(END) Dow Jones Newswires