08:56 AM EDT, 05/28/2024 (MT Newswires) -- Agios Pharmaceuticals ( AGIO ) said Tuesday that it has agreed to sell its rights to a 15% royalty on the potential US net sales of Servier's vorasidenib to Royalty Pharma ( RPRX ) for $905 million.

Under the terms, Agios said it will receive the $905 million payment upfront upon approval of vorasidenib by the US Food and Drug Administration. Agios is also entitled to a $200 million milestone payment from Servier upon FDA approval, the company added.

Royalty Pharma ( RPRX ) will get the 15% royalty on annual US net sales up to $1 billion as well as a 12% royalty on sales above $1 billion, while Agios will retain the rights to a 3% royalty on sales above $1 billion, Agios said.

Vorasidenib is an oral treatment of isocitrate dehydrogenase-mutant diffuse glioma, Agios said.

Agios shares climbed 21.7% and Royalty Pharma ( RPRX ) shares were 0.5% higher in recent premarket activity.

Price: 38.32, Change: +6.82, Percent Change: +21.65