Immunomedics, Inc. (NASDAQ:IMMU) and Royalty Pharma recently announced that the former company will be selling tiered, sales-based royalty rights on global net sales of sactiuzumab govitecan for $175 million to Royalty Pharma. The rapidly growing biopharmaceutical company has also purchased Immunomedics common stock worth $75 million at a $17.15/share rate.
The purchase price is more than 15% premium over the average closing price of the stock trailing since last 15 days. With this $250 million funding, Immunomedics has gained resources that will support the next phase of growth of the company. It is currently focusing on developing sacituzumab govitecan in advanced urothelial cancer, metastatic triple-negative breast cancer (TNBC), and other health indications with high medical need.
Immunomedics also plans to build its medical affairs, clinical, manufacturing, and commercial infrastructure with these resources. According to reports, the royalty rate starts at 4.15% on net annual sales of around $2 billion. The transaction is expected to provide enough cash to the company to continue its operations until 2020.
Immunomedics To Evolve As Fully Integrated Biopharmaceutical Company
According to President and Chief Executive Officer of Immunomedics, Michael Pehl, the recent purchase by Royalty Pharma supports the strategy of the company to evolve as a fully integrated biopharmaceutical company and become one of the recognized leaders in the field of antibody-drug conjugates. Pehl said that this agreement extends its association with Royalty Pharma that goes beyond the initial commercialization and approval of sacituzumab govitecan for metastatic TNBC.
Phel further stated that the New York-based company is known for identifying and supporting outstanding products and Immunomedics is looking forward to working with them as the company continues to advance its working on sacituzumab govitecan and many other drugs that are currently in pipeline aimed at improving chances of survival and outcomes for the patients suffering from hard to treat cancers.
The Founder & Chief Executive Officer of Royalty Pharma, Pablo Legorreta said that Sacituzumab govitecan is one of the most exciting current therapies in oncology and holds high potential for coming up with solutions for patients with metastatic TNBC.