Adding long-term revenue streams
PDL (O:PDLI) recently acquired the rights to two revenue streams, which may help its long-term cash flow position. Firstly, it signed a deal of up to $200m ($50m upfront) with Ariad (O:ARIA) for royalty rights to Iclusig, an approved oncology drug. Secondly, it signed a $65m deal (all upfront) with AcelRx (O:ACRX) for royalty rights for its sufentanil sublingual tablet system, Zalviso, which has just been approved in the EU and should launch in H116. The two products could provide total peak royalties of around $50m in 2027.
Iclusig for CML and Ph+ ALL
PDL acquired royalty rights to Iclusig, which is approved in the US, EU, Israel, Canada and Switzerland for chronic myeloid leukemia (CML) and Philadelphia chromosome positive acute lymphoblastic leukemia (Ph+ ALL). PDL is eligible for 6.5-7.5% in peak royalties, depending on the total amount drawn. Currently, Iclusig’s annual run rate is ~$100m and sales could peak as high as $470m. However, if royalties disappoint, Ariad will need to pay PDL the difference between the amount drawn by Ariad and the royalties received by PDL.
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