The France-based pharmaceutical company Servier is back with a new deal, adding Agios Pharmaceuticals, Inc.‘s (NASDAQ: AGIO) oncology portfolio for $1.8 billion upfront in cash. The portfolio consists of Agios’ commercial, clinical and research-stage oncology product line, which includes Tibsovo, a treatment for adults with IDH1-mutant relapsed or refractory acute myeloid leukemia, and additional oncology pipeline and clinical programs. The deal also includes Agios’ co-commercialization responsibilities for Bristol Myers Squibb’s (NYSE: BMY) IDHIFA and certain clinical development activities within the IDHIFA development program.
In addition to the upfront payment, Servier will pay Agios up to $200 million in a potential future milestone payment for Vorasidenib, an investigational drug for treatment for patients with IDH-mutant low-grade glioma, and 5% royalties on U.S. net sales of Tibsovo.
The proceeds from the transaction will allow Agios to focus on advancing its genetically defined disease portfolio and return at least $1.2 billion to shareholders post-closing. The deal is expected to close in Q2:21.
This is not the first oncology deal for Servier, according to results in our Healthcare Deal Database. Back in April 2018, Servier acquired Shire‘s oncology business, which had sales of $262 million in 2017. The business was valued at $2.4 billion in cash. It was comprised of in-market products ONCASPAR (pegaspargase) and ex-U.S. rights to ONIVYDE (irinotecan pegylated liposomal formulation), as well as two early-stage immuno-oncology pipeline collaborations. The purchase of the oncology business jumpstarted Servier’s oncology program and gave the company a presence in the United States.