Pfizer and Arvinas have entered into an agreement to grant Rigel Pharmaceuticals an exclusive global license for Veppanu, a newly approved breast cancer treatment, in a deal that includes $85 million upfront and the possibility of additional milestone and royalty payments.
Under the terms of the agreement, Rigel will pay an initial $70 million upfront. An additional $15 million payment is tied to the completion of certain development and manufacturing transition activities. All payments made by Rigel, including up to $320 million in potential development, regulatory and commercial milestones, as well as tiered royalties, will be divided equally between Pfizer and Arvinas.
Pfizer and Arvinas had already planned to license the medicine to another company months before it received an earlier-than-expected approval from the U.S. Food and Drug Administration on May 1. Veppanu became the first PROteolysis TArgeting Chimera (PROTAC) therapy to receive regulatory approval. The treatment was approved for patients with estrogen receptor-positive (ER-positive), HER2-negative advanced or metastatic breast cancer carrying an estrogen receptor 1 (ESR1) mutation following at least one line of endocrine therapy.
Rigel, a South San Francisco-based pharmaceutical company with marketed products across oncology and hematologic disorders, was selected to take over the medicine.
“With its novel mechanism of action designed to address a key driver of resistance, Veppanu represents a compelling treatment option within this setting,” Rigel Chief Executive Officer Raul Rodriguez said in a press release.
Rodriguez also said the agreement marks a significant step forward for Rigel’s transformational growth strategy, allowing the company to enter a targeted segment of the breast cancer market focused on patients with limited treatment options after progression on endocrine therapy.
He added that Veppanu is expected to contribute strong revenue growth to Rigel’s commercial portfolio and could become a meaningful driver of long-term growth. Rodriguez further stated that Rigel is well positioned to advance the treatment, supported by an experienced commercial and medical affairs organization and a track record of launching newly acquired assets.
Veppanu’s approval was based on a phase 3 clinical trial comparing the medicine with AstraZeneca’s standard-of-care treatment Faslodex. In the study, Veppanu improved progression-free survival only in patients carrying an ESR1 mutation.
Following the discontinuation of two combination therapy trials involving the treatment, former Arvinas Chief Executive Officer John Houston said discussions with health regulators suggested the medicine would likely be limited to patients with the specific mutations in the second-line setting.
Arvinas Chief Executive Officer Randy Teel said Rigel was selected to help unlock Veppanu’s commercial potential and provide access to patients as efficiently as possible. Teel also said Arvinas plans to use the proceeds from the transaction to invest in the next wave of innovation across its early-stage pipeline.
While Arvinas and Pfizer remain responsible for ongoing development activities involving Veppanu, Rigel will contribute up to $40 million toward those efforts. Rigel will also have the option to sublicense commercialization rights to global partners outside the United States, while Arvinas and Pfizer will receive a percentage of revenue associated with international sales.
The agreement follows the recent end of Rigel’s partnership with Eli Lilly involving RIPK1 inhibitors. Lilly withdrew from the 2021 agreement last month, ending future payments that could have resulted from the collaboration. Rigel’s revenue currently comes mainly from marketed products, including Gavreto, Rezlidhia, and Tavalisse.
In the first quarter of 2026, the company reported $58.8 million in revenue and $8.7 million in net income after paying $46.9 million in quarterly R&D-related costs and expenses. Rigel shares rose more than 8% by 11:30 a.m. ET on Tuesday, May 12, following the announcement of the deal.
Arvinas and Pfizer have entered a significant agreement with Rigel Pharmaceuticals involving the breast cancer therapy Veppanu. The new licensing partnership highlights the growing importance of targeted oncology treatments and reinforces the position of Arvinas in the evolving cancer therapeutics market. The collaboration is expected to accelerate the development and commercialization of Veppanu for breast cancer patients globally.
Arvinas Expands Oncology Strategy
The latest agreement allows Rigel Pharmaceuticals to license Veppanu from Arvinas and Pfizer as part of a strategic effort to strengthen breast cancer treatment development. The partnership demonstrates how Arvinas continues to focus on innovative therapies designed to improve outcomes for patients facing difficult-to-treat cancers.
Industry experts believe the move could help expand access to advanced targeted medicines while supporting faster clinical progress in oncology research.
