GSK sells royalty rights on cancer drugs for nearly $400 million

UK pharma major GlaxoSmithKline (LSE: GSK) has reached agreement to sell its royalty interest in two cabozantinib products, brand names Cabometyx and Cometriq, to Royalty Pharma (Nasdaq: RPRX).

Under the terms of the deal, GSK will receive an upfront payment of $342 million and up to $50 million in additional payments contingent on the achievement of regulatory approvals of cabozantinib for prostate cancer and lung cancer in the USA and Europe.

Cabometyx, a multi-tyrosine kinase inhibitor (TKI), is approved for the treatment of patients with advanced renal cell carcinoma (RCC) both as monotherapy and in combination with Bristol Myers Squibb’s (NYSE: BMY) Opdivo (nivolumab) as a first line treatment. Cabometyx is also approved for hepatocellular carcinoma (HCC) in patients previously treated with sorafenib. Cometriq is approved for progressive, metastatic medullary thyroid cancer. Cabometyx and Cometriq are marketed by Exelixis (Nasdaq: EXEL) in the USA, and by partner partner Ipsen (Euronext: IPN) in regions outside the USA and Japan. Cabometyx is marketed in Japan by Exelixis’ partner Takeda (TYO: 4502).