Royalty Pharma plc announced that it has purchased a pre‑existing royalty interest in Nuvalent’s next‑generation tyrosine kinase inhibitors, neladalkib and zidesamtinib, from an undisclosed third party for up to $315 million. The payment structure consists of an initial $200 million upfront, a $75 million tranche contingent on EMA approval by December 31 2029, and a final $40 million contingent on additional performance milestones, ensuring that Royalty Pharma’s exposure is tied to regulatory and commercial success.
The deal grants Royalty Pharma a low‑single‑digit royalty on worldwide net sales of both therapies, with the royalty period projected to extend through approximately 2041‑42. By adding these two late‑stage oncology royalties, Royalty Pharma expands its portfolio of more than 35 commercial products and 20 development‑stage candidates, reinforcing its strategy of acquiring synthetic royalty interests that deliver predictable, long‑term cash flows.
Neladalkib is being developed for ALK‑positive non‑small‑cell lung cancer (NSCLC) and has demonstrated durable activity in TKI‑pretreated patients; a Phase 3 study in TKI‑naïve patients is underway. Zidesamtinib targets ROS1‑positive NSCLC and is currently under FDA review, with an action date of September 18 2026 for TKI‑pretreated patients; Phase 1/2 studies in TKI‑naïve patients are ongoing. Sales projections estimate $3.5 billion for neladalkib and $1.9 billion for zidesamtinib by 2035, underscoring the substantial market potential of both assets.
The acquisition aligns with Royalty Pharma’s core strategy of building a diversified royalty portfolio that delivers stable, long‑term revenue. The company’s Q3 2025 results showed portfolio receipts up 11% to $814 million, and management raised full‑year guidance for portfolio receipts to $3.2 billion–$3.25 billion. The addition of these two high‑potential oncology royalties is expected to enhance Royalty Pharma’s upside exposure and further solidify its position as a leading buyer of biopharmaceutical royalties.
Market reaction to the announcement was positive: the company’s shares rose 2.4% in pre‑market trading, and analysts at Goldman Sachs and TD Cowen increased their price targets to $45.00, citing the strategic nature of the deal and the strong Q3 2025 performance as key drivers of investor confidence.
Royalty Pharma’s CEO noted that the acquisition “strengthens our oncology portfolio and reinforces our commitment to delivering predictable, long‑term returns to shareholders.”
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