China-based Everest Medicines (HKG: 1952) has announced a significant financial development, receiving a full upfront payment of USD 280 million from Immunomedics, Inc., now a wholly-owned subsidiary of Gilead Sciences, Inc (NASDAQ: GILD). This payment is in relation to the cancellation of a partnership established in 2019, which was focused on the development of Trodelvy (sacituzumab govitecan) in certain Asian territories. Additionally, Everest has been reimbursed USD 34 million for expenses associated with the transition of Trodelvy.
In April 2019, Everest secured the rights to develop Immunomedics’ Trodelvy in Asian markets through a deal valued at nearly USD 800 million. This initial agreement included an upfront payment of USD 65 million, with an additional USD 60 million contingent upon US FDA approval for Trodelvy in the treatment of metastatic triple-negative breast cancer, which Immunomedics successfully achieved in 2021.
The landscape shifted following Gilead’s acquisition of Immunomedics for USD 21 billion in October 2020. The 2019 partnership was officially cancelled in August 2022, with Gilead and Immunomedics committing to a total compensation package that includes the USD 280 million upfront payment and an additional USD 175 million in future milestone-related payouts.
This substantial payment enhances Everest’s financial position, providing the company with approximately USD 430 million in pro forma cash. This capital will bolster Everest’s ongoing pipeline development, with key milestones expected in core therapeutic areas such as renal disease, an mRNA platform, and infectious diseases.-Fineline Info & Tech
