Arvinas and Pfizer Enter Exclusive License Agreement for Veppanu

Arvinas (ARVN) and Pfizer (PFE) have entered into a license agreement with Rigel Pharmaceuticals (RIGL) for the exclusive global development, manufacturing, and commercialization rights for Veppanu. Veppanu is the first FDA approved PROteolysis TArgeting Chimera, a type of heterobifunctional protein degrader. Under the terms of the agreement, Arvinas and Pfizer will receive an upfront payment of $70M and an additional $15M upon successful completion of select development and manufacturing transition activities, to be distributed evenly between Arvinas and Pfizer. Arvinas and Pfizer will also be eligible to receive up to $320M in future development, regulatory, and commercial milestone payments, as well as tiered royalties on net sales in the mid-teens to mid-20s, distributed evenly between Arvinas and Pfizer. Rigel will be responsible for the launch and commercialization of Veppanu in the U.S. and will own global rights with the ability to sublicense to potential partners to further develop and commercialize Veppanu outside of the U.S. Arvinas and Pfizer will be entitled to a percentage of sublicensing revenue generated outside the U.S. Arvinas and Pfizer will continue to be responsible for current ongoing development activities and Rigel will contribute up to $40M towards these activities. Closing of the transaction is subject to the parties' receipt of any necessary consents or approvals, including the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.