Revolution Medicines has partnered Royalty Pharma for $2bn in flexible funding to support the independent worldwide development and commercialisation strategy of its renin-angiotensin system (RAS) oncogene (ON) inhibitors.
The RAS(ON) inhibitor portfolio is targeted at patients with RAS-addicted cancers.
The funding agreement comprises up to $1.25bn through synthetic royalty monetisation on sales of Revolution Medicines鈥� RAS(ON) multi-selective inhibitor, daraxonrasib, and up to $750mn in corporate debt.
Revolution will retain complete strategic and executional control over product development, along with commercialisation efforts both within the US and globally.
Revolution Medicines CEO and chairman Mark Goldsmith stated: 鈥淭oday鈥檚 announcement represents a major boost to our bold vision on behalf of patients with RAS-addicted cancers.
鈥淭his funding agreement significantly increases the financial resources we can deploy while preserving optionality as we scale our operations to create the industry-leading global targeted medicines franchise for patients with RAS-addicted cancers based on our highly differentiated RAS(ON) inhibitor portfolio.鈥�
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By GlobalDataRoyalty Pharma is set to offer as much as $1.25bn in return for tiered royalties over 15 years based on the global annual net sales of daraxonrasib.
The synthetic royalty component is structured into five $250m tranches.
Revolution received an initial tranche from Royalty Pharma on completion.
The second is contingent upon positive results from the company鈥檚 Phase III RASolute 302 study targeting pancreatic ductal adenocarcinoma (PDAC).
If zoldonrasib, another candidate in its pipeline, is approved for indications with daraxonrasib, its sales would contribute towards the total net sales subject to royalties under this agreement.
However, if approved with exclusive indications for zoldonrasib, it would not incur royalty costs.
The debt facility portion consists of three tranches totalling up to $750m linked directly to daraxonrasib鈥檚 commercial milestones.
The first tranche will be received by Revolution, following US Food and Drug Administration (FDA) approval of daraxonrasib to treat metastatic PDAC by January 2028.
Subsequent tranches depend on the company鈥檚 decision and will be made available after achieving specific annual net sales of daraxonrasib.
