Royalty Pharma (RPRX) Strengthens Pipeline With New Oncology Royalty Purchase

Royalty Pharma plc (NASDAQ:RPRX) is one of the most undervalued and overlooked large-cap stocks. On August 25, Royalty Pharma plc (NASDAQ:RPRX) said it bought royalty rights to Amgen’s cancer drug ‘Imdeltra’ from BeOne Medicines for $885 million. Imdeltra is a treatment that works by directing the body’s immune T-cells to attack cancer cells through a target called DLL3. The deal also allows BeOne to sell additional royalties of up to $65 million within 12 months, bringing the potential transaction value to $950 million.

Photo by Kristine Wook on Unsplash

The royalty covers approximately 7% of global net sales and extends through 2038 to 2041, with BeOne retaining the commercial rights in China. Imdelltra represents a novel therapy for small-cell lung cancer, a disease with limited treatment options.

On the deal, Royalty Pharma plc (NASDAQ:RPRX) CEO Pablo Legorreta stated:

“Imdelltra is reshaping the treatment paradigm for patients with small cell lung cancer, a highly aggressive disease with few treatment options. Today’s transaction is consistent with our strategy of acquiring royalties on highly transformative products in life sciences. Imdelltra is expected to further enhance Royalty Pharma’s long-term growth and portfolio diversification, and we remain incredibly excited given our robust transaction pipeline.”

Royalty Pharma plc (NASDAQ:RPRX) acquires royalty interests in biopharmaceutical products, building a diversified portfolio across multiple therapeutic areas.

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Disclosure: None. This article is originally published at Insider Monkey.