Delaware-based Rigel Pharmaceuticals announced Tuesday it has secured worldwide licensing rights to a recently approved breast cancer treatment developed by pharmaceutical giants Pfizer and Arvinas, adding a fourth commercial product to the company’s portfolio.
The announcement sent Rigel’s stock price climbing more than 5% during pre-market trading sessions.
Under the agreement, Rigel gains complete exclusive authority to develop, produce and market the breast cancer medication Veppanu globally. The pharmaceutical company will pay Arvinas and Pfizer $70 million immediately, with an additional $15 million due once transition procedures are finalized.
Federal regulators granted approval for Veppanu earlier this month specifically for patients battling advanced breast cancer with tumors containing particular genetic mutations. The drug’s approval followed extensive late-stage clinical testing involving 624 participants, which demonstrated that patients taking Veppanu experienced extended periods without cancer progression compared to those receiving fulvestrant, an established hormone treatment.
The licensing arrangement includes potential future payments reaching $320 million tied to regulatory approvals and sales achievements, plus ongoing royalty payments based on product sales. Rigel has committed to contributing up to $40 million toward continued development efforts over the coming four years, while Pfizer and Arvinas will maintain their current research activities.
The transaction requires standard regulatory approvals, including clearance from U.S. antitrust authorities, with completion anticipated by mid-June.
