Covington Represents Royalty Pharma in Acquisition of Royalty Interest in Nuvalent Drugs for up to $315M

NEW YORK—Covington advised Royalty Pharma plc in its acquisition of a pre-existing royalty interest in Nuvalent’s neladalkib and zidesamtinib from an undisclosed third party for up to $315 million.

Neladalkib and zidesamtinib are next-generation tyrosine kinase inhibitors (TKIs). Neladalkib is in development for patients with ALK mutation-positive non-small cell lung cancer (NSCLC) and zidesamtinib is in development for ROS1 mutation-positive NSCLC. Both therapies are designed to deliver a best-in-class combination of efficacy and tolerability.

Royalty Pharma is acquiring a low-single digit pre-existing royalty on worldwide net sales on each of Nuvalent’s neladalkib and zidesamtinib from an undisclosed third party for up to $315 million. The expected royalty duration for both therapies extends through approximately 2041 to 2042.

Founded in 1996, Royalty Pharma is the largest buyer of biopharmaceutical royalties and a funder of innovation across the biopharmaceutical industry, collaborating with innovators from academic institutions, research hospitals, and non-profits through small and mid-cap biotechnology companies to leading global pharmaceutical companies.

The Covington team included Peter Schwartz and Julian Wright (corporate), and Scott Cunningham (regulatory).