Pfizer and Alvinas have found a buyer for their newly approved breast cancer drug Vepanu, selling an exclusive worldwide license to Rigel Pharmaceuticals for $85 million upfront, with potentially hundreds of millions of dollars more in milestone and royalty payments.
The agreement includes an initial upfront payment of $70 million and an additional $15 million upon completion of certain “development and manufacturing transition activities.”
All payments to Rigel, including up to $320 million in future development, regulatory and commercial milestone payments, plus tiered royalties, will be split equally between Alvinas and Pfizer.
Rigel, a South San Francisco-based company that sells several products across oncology and hematology, was selected to “unlock Veppanu’s commercial potential and provide access to patients as efficiently as possible,” Arvinas CEO Dr. Randy Teel commented in a company release.
Pfizer and Alvinas had already planned to deliver the drug to licensees months ago, when it received FDA approval ahead of schedule on May 1. Veppanu, the first proteolytic targeting chimera (PROTAC) therapy to cross the regulatory finish line, has been approved for the treatment of a narrowly selected breast cancer population: patients with ER-positive, HER2-negative advanced or metastatic breast cancer with estrogen receptors. (ESR1) mutations after at least one endocrine therapy.
The indication emerged from a phase 3 trial comparing Veppanu with AstraZeneca’s standard treatment Faslodex, which found that the new treatment could only improve progression-free survival for patients with ESR1 mutations. After halting two combination therapy trials involving Veppanu, former Alvinas CEO Dr. John Huston explained that consultations with health regulators suggested the treatment was likely to be limited to patients with specific mutations in second-line therapy.
Nevertheless, Rigel views the license agreement as a “significant step forward” in its “transformational growth strategy,” allowing it to enter “a targeted segment of the large breast cancer market focused on patients with limited treatment options as they progress through endocrine therapy,” it said in a press release, adding that the drug is expected to contribute “strong revenue growth” to its commercial portfolio and “could be a significant driver of long-term revenue.” growth. ”
“Veppanu, with its novel mechanism of action designed to address key drivers of resistance, represents an attractive treatment option in this setting,” Rodriguez explained. “Importantly, we are well-positioned to advance this important new therapy, supported by an experienced commercial and medical administrative organization and a track record of successfully ramping up newly acquired assets.”
Alvinas and Pfizer will be responsible for ongoing drug development activities, which Rigel plans to invest up to $40 million in. Rigel also has the ability to sublicense commercialization to potential global partners outside the United States, and Alvinas and Pfizer are collaborating on a percentage of revenue related to international sales. Alvinas plans to use the new cash flow to invest in “the next wave of innovation” across its early-stage pipeline, Thiel said.
The deal is particularly good news for Rigel following its recent break with Eli Lilly in a multi-million dollar deal for Rigel’s RIPK1 inhibitor.
Rigel’s income comes primarily from collecting over-the-counter drugs, as Lilly last month completely pulled out of its 2021 agreement and canceled future payments it would have received from the partnership. The company’s commercially available products include Gabreto, a treatment from the former Roche & Blueprint Medicines that was acquired in 2024, Leslidia, a leukemia treatment acquired by Forma Therapeutics, and Tavarisse, a blood disease treatment approved in 2018. In the first quarter of 2026, Rigel had revenues of $58.8 million and net income of $8.7 million after paying quarterly research and development-related costs and expenses of $46.9 million.
The transaction pushed Rigel’s stock price up more than 8% as of 11:30 a.m. ET on Tuesday, May 12.
