GlaxoSmithKline, AnaptysBio amend immuno-oncology pact

• AnaptysBio (NASDAQ:ANAB) and GlaxoSmithKline (NYSE:GSK) have amended their immuno-oncology collaboration agreement that now provides AnaptysBio with increased royalties on dostarlimab sales, a royalty on GSK’s Zejula and a one-time cash payment.
• Previously, dostarlimab royalties ranged from 4-8%, where the 8% royalty tier was applicable to global net sales above $1B. Now the royalty terms range from 8-25%, where AnaptysBio will receive 8% of annual global net sales below $1B, and 12-25% of net sales above $1B.
• $1.1B in milestone payments remain unchanged, and AnaptysBio anticipates receiving $75M in milestones over the next 18 months as dostarlimab obtains FDA and EMA regulatory approval for the first two indications, as well as an additional $165M in sales milestones is anticipated by AnaptysBio upon achievement of certain dostarlimab annual sales revenues.
• Starting January 1, 2021, GSK has also agreed to pay AnaptysBio a 1% royalty on GSK’s Zejula sales, and will pay a one-time cash payment of $60M within 30 days.
• GSK receives freedom to conduct combination development and commercialization of Zejula with third party molecules.
• https://seekingalpha.com/news/3625707-glaxosmithkline-anaptysbio-amend-immuno-oncology-pact