Fenwick Advises Royalty Pharma in its $905 Million Royalty Acquisition Agreement with Agios Pharmaceuticals

Fenwick represented Royalty Pharma (Nasdaq: RPRX), a leading buyer of biopharmaceutical royalties and a major funder of innovation across the biopharmaceutical industry, on IP diligence matters relating to its acquisition of Agios Pharmaceuticals’ royalty on Servier’s vorasidenib for a conditional $905 million in upfront cash payment. Vorasidenib is an oral, selective, highly brain-penetrant dual inhibitor of mutant isocitrate dehydrogenase 1 and 2 (IDH1/2) enzymes for the treatment of IDH-mutant diffuse glioma, a progressive and incurable brain tumor. Vorasidenib was granted Breakthrough Therapy Designation by the FDA, and it received priority review with a Prescription Drug User Fee Act action (PDUFA) date of August 20, 2024. If approved, vorasidenib would be the first targeted therapy in IDH-mutant glioma.

Under the terms of the agreement, Royalty Pharma will pay Agios $905 million in upfront cash on FDA approval of vorasidenib in exchange for a 15% royalty on annual US net sales of the approved drug up to $1 billion and a 12% royalty on annual US net sales greater than $1 billion. Agios will retain a 3% royalty on annual US net sales greater than $1 billion. More information about the transaction is available in the press release.

Fenwick also recently represented Royalty Pharma in its $575 million funding agreement with Cytokinetics and in its $525 million acquisition agreement with ImmuNext. 

The Fenwick team on the vorasidenib deal included patent partner Dr. Carl Morales, associate Dr. Stefan Ochiana, and patent agent Dr. Hugo Garrido.