Royalty Pharma plc (Nasdaq: RPRX) and Revolution Medicines, Inc. (Nasdaq: RVMD) have entered into a transformative funding agreement on June 24, 2025, providing up to $2 billion to support the global development and commercialization of daraxonrasib, a promising RAS(ON) multi-selective inhibitor in Phase 3 trials for pancreatic cancer and non-small cell lung cancer (NSCLC).
This innovative partnership enables Revolution Medicines to retain control over its pipeline while accessing significant capital to advance its mission of addressing RAS-addicted cancers.
Download PDF 👉 – ROYALTY PHARMA AND REVOLUTION MEDICINES ENTER INTO
FUNDING AGREEMENTS FOR UP TO $2 BILLION Press Release PDF
Strategic Funding Structure Supports Global Ambitions
The agreement combines synthetic royalty funding and a senior secured loan, tailored to fuel Revolution Medicines’ expansive plans for daraxonrasib and its broader RAS(ON) inhibitor portfolio.
Key Financial Components
Royalty Pharma’s commitment of up to $2 billion is structured as follows:
- Synthetic Royalty Funding: Up to $1.25 billion, including a $250 million upfront payment, in exchange for royalties on worldwide net sales of daraxonrasib (and zoldonrasib, if approved in overlapping indications).
- Senior Secured Term Loan: Up to $750 million, available in tranches tied to regulatory and sales milestones, with a six-year maturity at SOFR plus 5.75% (3.5% SOFR floor).
| Component | Amount | Details |
|---|---|---|
| Upfront Royalty Payment | $250 million | Immediate payment to Revolution Medicines. |
| Additional Royalty Funding | Up to $1 billion | Contingent on milestones (e.g., FDA approval, sales thresholds). |
| Secured Term Loan | Up to $750 million | Drawn in tranches post-FDA approval and sales milestones. |
| Total Commitment | Up to $2 billion | Enables global development and commercialization of daraxonrasib. |
Royalty Terms Breakdown
The synthetic royalty rates on daraxonrasib’s annual worldwide net sales are tiered across five tranches, with rates adjusting based on sales thresholds and milestone achievements:
| Tranche | Amount | Timing | Royalty Rates ($0-2B / $2-4B / $4-8B) |
|---|---|---|---|
| Tranche 1 | $250 million | Immediate | 2.55% / 1.50% / 0.60% |
| Tranche 2 | $250 million | Positive RASolute 302 data | 2.00% / 1.00% / 0.40% |
| Tranche 3 | Up to $250 million | FDA approval (2L pancreatic cancer) | 1.50% / 0.80% / 0.40% |
| Tranche 4 | Up to $250 million | Sales milestone achievement | 1.00% / 0.75% / 0.50% |
| Tranche 5 | Up to $250 million | Positive Phase 3 data (1L pancreatic cancer) | 0.75% / 0.50% / 0.50% |
| Total | $1.25 billion | Cumulative Royalty Rate | 7.80% / 4.55% / 2.40% |
Notes: Royalty rates adjust pro-rata based on draw amounts. Rates for $0-2 billion sales may increase from 2030 to 2041 if prior-year sales fall below a set threshold.
Daraxonrasib: A Potential Breakthrough in Oncology
Daraxonrasib, a RAS(ON) multi-selective inhibitor, is poised to become the first targeted therapy to inhibit all major forms of RAS, a common driver of human cancers. Currently in Phase 3 development, it targets:
- Pancreatic Adenocarcinoma (PDAC): Affects ~56,000 patients annually in the U.S., with Phase 3 results expected in 2026.
- Non-Small Cell Lung Cancer (NSCLC): Impacts ~60,000 patients annually in the U.S., with ongoing Phase 3 enrollment.
No approved therapies currently target RAS broadly for these cancers, making daraxonrasib a potential practice-changing treatment.
Leadership Perspectives
- Pablo Legorreta, CEO of Royalty Pharma: “This groundbreaking partnership provides Revolution Medicines with up to $2 billion of long-term capital through a customized funding solution, enabling them to retain control of daraxonrasib’s development and capture significant value creation.”
- Mark A. Goldsmith, M.D., Ph.D., CEO of Revolution Medicines: “This funding agreement significantly increases our financial resources while preserving optionality, allowing us to scale operations and create a global targeted medicines franchise for RAS-addicted cancers.”
About the Companies
- Royalty Pharma: Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties, with a portfolio of over 35 commercial products and 15 development-stage candidates. Contact: ir@royaltypharma.com, +1 (212) 883-6637.
- Revolution Medicines: A clinical-stage oncology company focused on developing targeted therapies for RAS-addicted cancers, leveraging its innovative RAS(ON) inhibitor portfolio.
Advisors
- Royalty Pharma: Legal advisors Goodwin Procter and Maiwald.
- Revolution Medicines: Legal advisor Latham & Watkins; financial advisor TD Securities.
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Forward-Looking Statements: This announcement includes forward-looking statements regarding Royalty Pharma’s strategies and expectations, subject to risks and uncertainties. For details, refer to Royalty Pharma’s SEC filings at www.sec.gov.
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