Royalty Pharma and Agios Pharmaceuticals Enter Into Vorasidenib Royalty Agreement for $905 Million

Core Viewpoint - Royalty Pharma has acquired a $905 million interest in Agios Pharmaceuticals' royalty on vorasidenib, contingent on FDA approval, which is expected to be a transformative therapy for IDH-mutant glioma patients [1][2][3]. Group 1: Acquisition Details - Royalty Pharma will pay Agios $905 million in upfront cash upon FDA approval of vorasidenib in exchange for a 15% royalty on annual U.S. net sales up to $1 billion and a 12% royalty on sales exceeding $1 billion [3]. - Agios will retain a 3% royalty on annual U.S. net sales greater than $1 billion [3]. Group 2: Product Information - Vorasidenib is an oral, selective dual inhibitor of IDH1/2 enzymes, targeting IDH-mutant diffuse glioma, with an estimated annual incidence of 1,500 patients and a prevalence of approximately 10,000 in the U.S. [2]. - The pivotal Phase 3 INDIGO clinical trial demonstrated significant efficacy and safety, meeting its primary endpoint of progression-free survival [2][8]. - Vorasidenib has received Breakthrough Therapy Designation from the FDA, with a PDUFA date set for August 20, 2024 [2][8]. Group 3: Financial Projections - Royalty Pharma projects peak annual sales for vorasidenib to exceed $1 billion, potentially generating over $150 million in annual royalties [4][8]. - If approved, royalties from vorasidenib are expected to continue through 2038 [4]. Group 4: Company Background - Royalty Pharma, founded in 1996, is the largest buyer of biopharmaceutical royalties and a key funder of innovation in the biopharmaceutical industry [7]. - The company collaborates with various innovators, including academic institutions and biotechnology companies, to fund late-stage clinical trials and acquire existing royalties [7].