Why Is Agios Pharmaceuticals Stock Trading Higher On Tuesday?
Portfolio Pulse from Vandana Singh
Agios Pharmaceuticals (NASDAQ: AGIO) has agreed to sell its rights to a 15% royalty on potential U.S. net sales of Servier’s vorasidenib to Royalty Pharma (NASDAQ: RPRX) for an upfront payment of $905 million upon FDA approval. Agios will retain a 3% royalty on annual U.S. net sales over $1 billion. The FDA has set a PDUFA action date of August 20 for vorasidenib. AGIO shares are up 20.7% following the announcement.
May 28, 2024 | 5:00 pm
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POSITIVE IMPACT
Agios Pharmaceuticals has agreed to sell its 15% royalty on vorasidenib to Royalty Pharma for $905 million upon FDA approval. AGIO shares surged 20.7% following the announcement.
The sale of the royalty rights provides Agios with a significant upfront payment, boosting its financial position. The market reacted positively, as evidenced by the 20.7% increase in AGIO shares.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Royalty Pharma will acquire the 15% royalty on vorasidenib from Agios for $905 million upon FDA approval. This acquisition could enhance RPRX's revenue streams.
The acquisition of the royalty rights on vorasidenib could provide Royalty Pharma with a new revenue stream, potentially boosting its financial performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80