Royalty Pharma Secures $950M Cancer Royalties Deal with Amgen, Stock Rises

Royalty Pharma (RPRX) shares climbed after announcing a $950 million agreement to acquire royalty interests in Amgen's (AMGN) newly approved lung cancer drug, Imdelltra. The deal grants Royalty Pharma approximately 7% of global net sales for the therapy, which targets extensive-stage small cell lung cancer patients who have failed chemotherapy.

The upfront payment of $885 million underscores Royalty Pharma's aggressive expansion in oncology royalties, following its 2022 acquisition of interests in Roche's Gavreto for $340 million. BeOne Medicines retains commercial rights in China and an option to sell an additional $65 million stake within the next year.

Market reaction was muted for Amgen, with shares flat in pre-market trading. The royalty stream is projected to extend through 2038-2041, bolstering Royalty Pharma's long-term revenue visibility in the high-growth cancer treatment sector.