Royalty Pharma's Unit Signs Royalty Purchase Agreement with BeiGene

BeiGene has signed a royalty purchase agreement with Royalty Pharma plc's unit. The agreement covers royalties related to BeiGene's oncology and hematology products. Royalty Pharma plc is a buyer of biopharmaceutical royalties and a funder of innovation across the biopharmaceutical industry. The company has a portfolio of royalties on over 35 commercial products and 14 development-stage product candidates. The deal aims to provide BeiGene with non-dilutive capital and enhance its financial flexibility.

Royalty Pharma plc (RPRX) has entered into a significant agreement with BeOne Medicines, securing the rights to the royalties on worldwide sales of IMDELLTRA® (tarlatamab-dlle), excluding China, for up to $950 million. This transaction, announced on August 25, 2025, underscores the growing trend of pharmaceutical companies leveraging royalty-based financing to bolster their cash positions and strategic flexibility.

Under the terms of the agreement, BeOne Medicines will receive an upfront payment of $885 million, with the option to sell additional royalties for up to $65 million within the next 12 months. The deal is structured to provide BeOne with non-dilutive capital, which can be crucial for maintaining its financial flexibility and continuing its mission to develop innovative, affordable cancer treatments.

IMDELLTRA is a first-in-class DLL-3 targeting bispecific T-cell engager indicated for the treatment of extensive-stage small cell lung cancer (ES-SCLC) that has progressed on or after platinum-based chemotherapy. The drug received accelerated approval from the FDA in May 2024, highlighting its potential in the oncology market. BeOne will retain royalty and all other rights to other assets under its existing collaboration with Amgen, including xaluritamig, a first-in-class STEAP1 x CD3 XmAb currently being studied in patients with metastatic castration-resistant prostate cancer (mCRPC).

The agreement signifies a strategic move for both companies. Royalty Pharma, known for its extensive portfolio of royalties on commercial and development-stage products, aims to enhance its presence in the biopharmaceutical industry. Meanwhile, BeOne Medicines benefits from increased operational and strategic flexibility, which is critical for its long-term growth and development plans.

This transaction is part of a broader trend where pharmaceutical companies are increasingly turning to royalty-based financing to secure capital without diluting equity. Royalty Pharma's acquisition of BeOne's IMDELLTRA royalties is a testament to this trend, highlighting the potential for such agreements to provide substantial financial benefits while preserving strategic autonomy.

References:

[1] https://finance.yahoo.com/news/beone-medicines-announces-imdelltra-royalty-100000191.html
[2] https://www.nasdaq.com/articles/royalty-pharma-acquires-royalty-interest-imdelltra-beone