Agios to sell vorasidenib royalty for up to $1.1 billion

Cambridge, USA-based Agios Pharmaceuticals (Nasdaq: AGIO) closed up more than 23% at $38.81 yesterday, after it revealed it has agreed to sell its rights to its 15% royalty on potential US net sales of Servier’s vorasidenib to Royalty Pharma.

French privately-held pharma company Servier gained rights to vorasidenib when it acquired Agios Pharmaceuticals' oncology business for $2 billion in 2021.

Under the terms of the deal, Agios will receive an upfront payment of $905 million upon approval of vorasidenib by the US Food and Drug Administration (FDA) and Royalty Pharma will receive the entirety of the 15% royalty on annual US net sales of vorasidenib up to $1 billion, and a 12% royalty on annual US net sales greater than $1 billion. Agios will retain a 3% royalty on annual U.S. net sales greater than $1 billion.