(Reuters) -Royalty Pharma said on Tuesday it will pay up to $2 billion to Revolution Medicines to support the companies’ plans for global development and sales of the experimental cancer drug daraxonrasib.
Under the agreement, Royalty Pharma will provide up to $1.25 billion, including a $250 million upfront payment, in exchange for a synthetic royalty on annual worldwide net sales of daraxonrasib.
The company will also extend $750 million in secured debt to Revolution Medicines.
Daraxonrasib, currently in late-stage development, is being studied for the treatment of pancreatic cancer and non-small cell lung cancer.
(Reporting by Christy Santhosh in Bengaluru; Editing by Tasim Zahid)
