Agios climbs on $905 mln deal with Royalty Pharma for brain tumor treatment

Royalty Pharma

28/05/2024 13:20

** Shares of drug developer Agios Pharmaceuticals  AGIO.O 
rise 22.2% to $38.50 premarket
    ** Co to receive $1.1 bln in payments upon FDA approval of
vorasidenib, French drug developer Servier's brain tumor
treatment
    ** Co plans to sell its 15% royalty rights on potential U.S.
net sales of vorasidenib to Royalty Pharma  RPRX.O  for a $905
mln upfront payment upon U.S. FDA approval of drug
    ** RPRX buys royalties of future drugs from academic labs
and biotechs, which use the cash to fund research
    ** AGIO will retain a 3% royalty on annual U.S. net sales
greater than $1 billion for the treatment
    ** Will also receive a $200 mln milestone payment from
Servier
    ** Stock up 41.5% YTD as of last close

    

 (Reporting by Christy Santhosh and Puyaan Singh)
 ((Christy.Santhosh@thomsonreuters.com))