Rigel Pharmaceuticals Inc. (NASDAQ: RIGL) announced it has entered an exclusive global licensing agreement with Arvinas Inc. and Pfizer Inc. to develop and commercialize VEPPANU (vepdegestrant), an FDA-approved oral cancer treatment.

The deal involves an upfront payment of $70 million plus an additional $15 million upon completion of transition activities. Arvinas and Pfizer are eligible for up to $320 million in future regulatory and commercial milestones, along with tiered royalties ranging from mid-teens to mid-twenties on commercial sales.

VEPPANU received FDA approval on May 1, 2026, for treating adults with estrogen receptor-positive, HER2-negative, ESR1-mutated advanced or metastatic breast cancer following at least one line of endocrine therapy. The drug is designed to degrade rather than inhibit disease-causing proteins using PROTAC technology.

Clinical trial data from the Phase 3 VERITAC-2 study showed VEPPANU achieved a median progression-free survival of 5.0 months compared to 2.1 months for fulvestrant, representing a 43% reduction in risk of disease progression or death. The study included 270 patients with ESR1 mutations.

Rigel will handle U.S. commercialization and holds global rights with sublicensing options for international markets. The company will contribute up to $40 million toward development activities over four years while Pfizer and Arvinas continue current development responsibilities.

The transaction is subject to Hart-Scott-Rodino antitrust clearance and other closing conditions, with completion expected in mid-June 2026.