Pfizer and Arvinas have landed a buyer for the newly approved breast cancer med Veppanu, selling an exclusive global license to Rigel Pharmaceuticals for $85 million upfront and potentially hundreds of millions more in milestone and royalty payments.
The deal includes an initial upfront payment of $70 million, with an added $15 million tied to the completion of certain “development and manufacturing transition activities.”
All of the Rigel payments, including up to $320 million in future development, regulatory and commercial milestone payments—plus tiered royalties—will be split evenly between Arvinas and Pfizer.
Rigel, a South San Francisco-based pharma that markets a handful of products across oncology and hematologic disorders, was selected to “help unlock the commercial potential of Veppanu and provide access to patients as efficiently as possible,” Arvinas CEO Randy Teel, Ph.D., commented in a company release.
Pfizer and Arvinas had already planned on turning the med over to a licensee months before it earned its ahead-of-schedule FDA nod on May 1. The first PROteolysis TArgeting Chimera (PROTAC) therapy to cross the regulatory finish line, Veppanu was approved to treat a narrowed breast cancer population of those who have ER-positive, HER2-negative advanced or metastatic breast cancer with an estrogen receptor 1 (ESR1) mutation following at least one line of endocrine therapy.
The indication was born from a phase 3 trial comparing Veppanu to AstraZeneca’s standard of care, Faslodex, which saw the new therapy only able to improve progression-free survival in those with an ESR1 mutation. After axing a pair of combo therapy trials involving Veppanu, former Arvinas CEO John Houston, Ph.D., explained that discussions with health regulators signaled that the treatment would likely be restricted to patients with the specific mutations in the second-line setting.
Nonetheless, Rigel sees the licensing deal as a “significant step forward” for its “transformational growth strategy,” allowing it to enter a “targeted segment of the sizable breast cancer market, focused on patients with limited treatment options following progression on endocrine therapy,” CEO Raul Rodriguez said in a press release, adding that the drug is expected to contribute “strong revenue growth” to its commercial portfolio and could become a “meaningful driver of long-term growth.”
“With its novel mechanism of action designed to address a key driver of resistance, Veppanu represents a compelling treatment option within this setting," Rodriguez explained. "Importantly, we are well-positioned to advance this important new treatment, supported by a highly experienced commercial and medical affairs organization and a proven track record of successfully launching newly-acquired assets.”
Although Arvinas and Pfizer are still responsible for the currently ongoing development activities for the med, Rigel will chip in up to $40 million for these activities. Rigel also has the ability to sublicense commercialization to potential global partners outside of the U.S., with Arvinas and Pfizer in line for a percentage of revenue tied to international sales. Arvinas plans to use its new cash flow to invest in the “next wave of innovation” across its early-stage pipeline, Teel noted.
The deal is especially good news for Rigel following a recent breakup with Eli Lilly on what would have been a multi-million-dollar deal surrounding Rigel’s RIPK1 inhibitors.
With Lilly fully backing out of the 2021 agreement last month and canceling future payments that could have come from the partnership, Rigel’s income stems mainly from its collection of commercial drugs. The company's marketed products include former Roche and Blueprint Medicines treatment Gavreto, which it bought in 2024, plus Forma Therapeutics-acquired leukemia med Rezlidhia and 2018-approved blood disorder drug Tavalisse. Over the first quarter of 2026, Rigel collected revenues of $58.8 million and $8.7 million in net income after paying $46.9 million in quarterly R&D-related costs and expenses.
With the deal, Rigel’s shares were up more than 8% at 11:30 am ET on Tuesday, May 12.