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Royalty Pharma buys Agios rights to cancer drug for $905M
CAMBRIDGE, Mass. – Agios Pharmaceuticals, Inc. (NASDAQ:AGIO), a company specializing in cellular metabolism to treat rare diseases, has entered into an agreement to sell its royalty rights on potential U.S. sales of the cancer drug vorasidenib to Royalty Pharma. The transaction is set to provide Agios with an upfront payment of $905 million upon U.S. Food and Drug Administration (FDA) approval of the drug, which is expected by the Prescription Drug User Fee Act (PDUFA) action date of August 20, 2024.
Vorasidenib is an investigational therapy for the treatment of IDH-mutant diffuse glioma, a form of brain cancer. It functions by inhibiting mutated forms of the enzymes isocitrate dehydrogenase 1 and 2 (IDH1/2), which are involved in cancer cell metabolism.
Under the terms of the deal, Royalty Pharma will acquire the full 15% royalty on annual net sales of vorasidenib in the U.S. up to $1 billion. If annual sales exceed this threshold, Agios will retain a 3% royalty, while Royalty Pharma’s royalty will be reduced to 12%.
Agios retains rights to a separate $200 million milestone payment from Servier, a global pharmaceutical company, upon FDA approval of vorasidenib. This payment is part of a previous agreement from the sale of Agios’s oncology portfolio to Servier in 2021.
Brian Goff, CEO of Agios, expressed that the deal with Royalty Pharma adds significant financial flexibility for the company and allows them to focus on preparing for potential launches of their drug PYRUKYND® (mitapivat) for thalassemia and sickle cell disease, as well as to potentially expand their pipeline.
The financial advice for the transaction was provided by Goldman Sachs & Co. LLC, and legal counsel was provided by WilmerHale.
InvestingPro Insights
Agios Pharmaceuticals has been making strategic financial moves, as evidenced by the recent agreement to sell royalty rights for vorasidenib, potentially bolstering their cash reserves upon FDA approval. This financial acumen is reflected in the company’s balance sheet, which, according to an InvestingPro Tip, holds more cash than debt. This liquidity is crucial for Agios as it prepares for the commercial launch of other drugs in its pipeline.
The company’s financial health is further underscored by its ability to meet short-term obligations, with liquid assets surpassing these liabilities. This is a reassuring sign for investors, especially considering that Agios is navigating through a period of significant cash burn, a challenge common in the biotech industry where research and development costs can be substantial.
InvestingPro Data reveals a mixed picture: Agios has a market cap of $1.79 billion and has experienced a notable 54.61% revenue growth over the last twelve months as of Q1 2024. This growth is indicative of the company’s potential, despite its current negative gross profit margin of -919.62% over the same period, which highlights the high costs associated with its groundbreaking research.
Investors interested in a deeper dive into Agios Pharmaceuticals can gain further insights with additional InvestingPro Tips available at https://www.investing.com/pro/AGIO. There are currently 9 additional tips listed, offering a comprehensive analysis of the company’s financial health and market performance. For those looking to subscribe to InvestingPro for a more detailed perspective, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
(Reuters) -Private equity firm Insight Partners is on the brink of closing a new $10 billion-plus fund, roughly half the amount originally targeted, the Financial Times reported on Sunday, citing five people with knowledge of its plans.
Insight will not formally close its 13th fund until early next year, the report said, adding that the final figure may be closer to $12 billion.
Insight Partners declined to comment on the report.
The report said Insight is using a private equity-style structure to sell more than $1 billion worth of stakes in start-ups and to free up cash to return to investors.
One of the start-ups is Israeli cybersecurity firm Wiz, which had called off a $23 billion deal with Google parent Alphabet (NASDAQ:) in July, the report said.
New York-based Insight raised $20 billion for its 12th flagship fund in 2022, aiming to ramp up investments in software and technology companies.
JERUSALEM (Reuters) -Prime Minister Benjamin Netanyahu said Israel would inflict a “heavy price” on the Iran-aligned Houthis who control northern Yemen, after they reached central Israel with a missile on Sunday for the first time.
Houthi military spokesman Yahya Sarea said the group struck with a new hypersonic ballistic missile that travelled 2,040 km (1270 miles) in just 11 1/2 minutes.
After initially saying the missile had fallen in an open area, Israel’s military later said it had probably fragmented in the air, and that pieces of interceptors had landed in fields and near a railway station. Nobody was reported hurt.
Air raid sirens had sounded in Tel Aviv and across central Israel moments before the impact at around 6:35 a.m. local time (0335 GMT), sending residents running for shelter. Loud booms were heard.
Reuters saw smoke billowing in an open field in central Israel.
At a weekly cabinet meeting, Netanyahu said the Houthis should have known that Israel would exact a “heavy price” for attacks on Israel.
“Whoever needs a reminder of that is invited to visit the Hodeida port,” Netanyahu said, referring to an Israeli retaliatory air strike against Yemen in July for a Houthi drone that hit Tel Aviv.
The Houthis have fired missiles and drones at Israel repeatedly in what they say is solidarity with the Palestinians, since the Gaza war began with a Hamas attack on Israel in October.
The drone that hit Tel Aviv for the first time in July killed a man and wounded four people. Israeli air strikes in response on Houthi military targets near the port of Hodeidah killed six and wounded 80.
Previously, Houthi missiles have not penetrated deep into Israeli air space, with the only one reported to have hit Israeli territory falling in an open area near the Red Sea port of Eilat in March.
Israel should expect more strikes in the future “as we approach the first anniversary of the Oct. 7 operation, including responding to its aggression on the city of Hodeidah,” Sarea said.
The deputy head of the Houthi’s media office, Nasruddin Amer, said in a post on X on Sunday that the missile had reached Israel after “20 missiles failed to intercept” it, describing it as the “beginning”.
The Israeli military also said that 40 projectiles were fired towards Israel from Lebanon on Sunday and were either intercepted or landed in open areas.
“No injuries were reported,” the military said.
PARIS (Reuters) – Eight people have died trying to cross the Channel from France to England, French authorities said on Sunday, confirming earlier media reports.
This latest incident follows the deaths of 12 people earlier this month when their boat capsized in the Channel on its way to Britain and highlights the pressure on the British and French governments to find ways to tackle the boat crossings.
Jacques Billant, the Prefect of the Pas-de-Calais region, said that rescue crews were alerted that a boat with 59 people onboard was in difficulty in waters off the coast of Ambleteuse in the Pas-de-Calais area.
“A new drama took place around one in the morning and we deplore the death of eight people,” he told a news conference, adding that the other 51 onboard were now in the care of rescue and medical crews.
The dead were men from Eritrea, Sudan, Syria, Egypt, Iran and Afghanistan, he added.
The Channel is one of the world’s busiest shipping lanes and currents are strong, which makes crossing on small boats dangerous.
The latest incident brings to 46 the number of people who have died trying to cross the Channel from France since the start of the year, Billant said.
On September 14 alone there were eight attempts to cross the Channel from France and some 200 migrants were rescued, he said.
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