Royalty Pharma Enters Into Upto $2 Bln Funding Deals With Revolution Medicines

(RTTNews) - Royalty Pharma plc (RPRX), Tuesday announced a $2 billion funding deal with Revolution Medicines, comprising of a synthetic royalty of upto $1.25 billion on annual worldwide net sales of daraxonrasib, and a senior secured loan of upto $750 million.

Of the total loan amount, the first tranche will be withdrawn after receiving the U.S. Food and Drug Administration's approval of daraxonrasib for metastatic pancreatic cancer. Whereas, the other two tranches will be available based on certain annual net sales milestone achievements for the treatment.

The agreement is expected to enable Revolution Medicines to retain control over pipeline development and global commercialization of daraxonrasib, which is a potential treatment for patients with pancreatic cancer and non-small cell lung cancer.

In the pre-market hours, Royalty Pharma's stock is trading at $35.29, down 0.32 percent on the Nasdaq.