Royalty Pharma plc announced a purchase of a pre‑existing royalty interest in Nuvalent’s two oncology candidates, neladalkib and zidesamtinib, for up to $315 million. The deal grants Royalty Pharma a 1.5% royalty on worldwide net sales of each drug, with an expected duration through 2041‑42.
The transaction aligns with Royalty Pharma’s core strategy of acquiring long‑term royalty streams from high‑potential biopharmaceutical products. By adding neladalkib and zidesamtinib to its portfolio, the company diversifies its revenue base and secures a predictable income stream tied to the commercial success of two promising NSCLC therapies. For Nuvalent, the cash infusion reduces the need for future equity financing and provides capital to accelerate clinical development and prepare for commercialization.
Neladalkib is a next‑generation ALK inhibitor that entered Phase 3 trials in 2025 and delivered positive pivotal results in November. Analysts project sales of approximately $3.5 billion by 2035. Zidesamtinib targets ROS1‑positive NSCLC and is currently under FDA review, with an action date of September 18, 2026. Projections estimate $1.9 billion in sales for zidesamtinib by 2035, underscoring the commercial potential that underpins the royalty valuation.
Financially, Royalty Pharma’s portfolio receipts rose 11% to $814 million in Q3 2025, prompting the company to raise its full‑year guidance. Nuvalent’s cash, cash equivalents, and marketable securities stood at $658 million as of June 30, 2024, and the new infusion extends the company’s runway to 2027 while mitigating dilution risk from future equity offerings.
Pre‑market trading data showed Royalty Pharma’s shares gaining about 2.5% while Nuvalent’s shares slipped roughly 0.3%. Investors viewed the deal as a positive addition to Royalty Pharma’s revenue pipeline, whereas Nuvalent’s slight dip reflected the market’s perception that the sale of a royalty interest, while cash‑generating, also represents a transfer of future upside.
CFO Alexandra Balcom highlighted the milestone, noting that the transaction “provides a significant cash infusion that can be used to fund ongoing clinical development and commercial preparation, while also reducing the need for future equity financing.” Royalty Pharma’s management reiterated its commitment to funding innovative oncology programs through strategic royalty acquisitions.
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