Rigel Pharmaceuticals, Inc. (RIGL) on Tuesday said it has entered into a global license agreement with Arvinas, Inc. (ARVN) and Pfizer Inc. (PFE) to develop, manufacture and commercialize beast cancer treatment Veppanu.
Veppanu, which has a novel mechanism of action, is the first and only FDA-approved PROteolysis TArgeting Chimera (PROTAC) therapy and is designed for adult patients with second-line or later ER-positive/HER2-negative, ESR1-mutated metastatic breast cancer.
Under the agreement, Arvinas and Pfizer will receive an upfront payment of $70 million and an additional $15 million upon successful completion of certain development and manufacturing transition activities. The companies are also eligible to receive tiered royalties on sales of Veppanu ranging from the mid-teens to the mid-twenties, as well as up to an additional $320 million tied to regulatory and commercial milestones.
Pfizer and Arvinas will continue ongoing development activities, while Rigel will contribute up to $40 million toward certain development programs over the next four years.
Rigel will lead the launch and commercialization of Veppanu in the United States and can sublicense the product outside the U.S. Arvinas and Pfizer will receive a percentage of sublicensing revenue.
The transaction is expected to close in mid-June 2026.
Shares of Arvinas rose more than 9% in pre-market trading after closing at $9.66 on Monday. Rigel shares gained more than 5% after closing at $26.20, while Pfizer shares rose 0.13% from Monday's closing of $25.81.
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