New Haven-based biotech Arvinas and partner Pfizer have entered a licensing agreement with California-based Rigel Pharmaceuticals that could generate up to $405 million tied to Arvinas’ newly approved breast cancer drug VEPPANU, the companies announced Tuesday.
The deal follows the recent U.S. Food and Drug Administration approval of VEPPANU, Arvinas’ first marketed drug, for certain patients with advanced or metastatic breast cancer.
Under the agreement, Arvinas and Pfizer will receive $70 million upfront, plus another $15 million tied to the completion of certain development and manufacturing transition activities. The companies are also eligible for up to $320 million in future development, regulatory and commercial milestone payments, along with tiered royalties on net sales. Payments will be split evenly between Arvinas and Pfizer.
Rigel will assume exclusive global rights to develop, manufacture and commercialize VEPPANU, while Arvinas and Pfizer will continue overseeing current development activities. Rigel will contribute up to $40 million toward that work, according to the announcement.
CEO Randy Teel said the agreement allows Arvinas to invest in its earlier-stage drug pipeline while maintaining a disciplined approach to cash management.
The transaction remains subject to regulatory approvals.
