BeOne Medicines Strikes $950 Million Royalty Deal with Royalty Pharma for IMDELLTRA, Strengthening Oncology Strategy and Financial Flexibility
BeOne Medicines Ltd. (Nasdaq: ONC; HKEX: 06160; SSE: 688235), a global oncology-focused biotechnology company, announced a significant financial and strategic transaction involving its commercial collaboration with Amgen. The company revealed that it has entered into a royalty purchase agreement with Royalty Pharma (Nasdaq: RPRX) for the worldwide sales of IMDELLTRA® (tarlatamab-dlle), excluding China. The deal, valued at up to $950 million, represents one of the largest royalty monetization transactions in oncology in recent years and underscores the market confidence in IMDELLTRA’s clinical and commercial trajectory.
Key Terms of the Agreement
Under the agreement, BeOne Medicines will receive an upfront cash payment of $885 million from Royalty Pharma. Additionally, the company retains an option to sell the remainder of its royalty interest within the next 12 months, potentially securing an additional $65 million. This structure provides immediate capital infusion while keeping flexibility for BeOne to realize further value in the near future, depending on market dynamics and internal needs.
Importantly, the company will continue to participate in future upside. BeOne negotiated the right to share in a portion of royalties if IMDELLTRA achieves annual global sales exceeding $1.5 billion. This ensures that the company maintains exposure to the longer-term commercial success of the product, while immediately strengthening its financial position.
BeOne also clarified that the transaction applies only to IMDELLTRA royalties. The company maintains its royalty and collaboration rights to other assets under its partnership with Amgen, most notably xaluritamig, a first-in-class STEAP1 x CD3 XmAb currently in clinical development for metastatic castration-resistant prostate cancer (mCRPC). This separation ensures that BeOne continues to benefit from the broader collaboration, which remains central to its oncology pipeline.
IMDELLTRA: A First-in-Class Immunotherapy
IMDELLTRA (tarlatamab-dlle) represents a major innovation in immunotherapy. It belongs to the class of bispecific T-cell engagers, designed to redirect the body’s immune system to attack cancer cells. Specifically, IMDELLTRA binds to DLL3, a protein expressed on the surface of tumor cells, and simultaneously engages CD3, a receptor on T cells. By bringing T cells into close proximity with DLL3-positive tumor cells, the therapy triggers a targeted immune-mediated cell killing response.
The U.S. Food and Drug Administration (FDA) has already approved IMDELLTRA for patients with extensive-stage small cell lung cancer (ES-SCLC) who have progressed on or after receiving platinum-based chemotherapy. Small cell lung cancer is an aggressive and hard-to-treat malignancy, with limited treatment options and poor survival rates after relapse. The approval of IMDELLTRA marks an important step forward for patients, introducing a novel immunotherapy that targets DLL3, a previously underexploited cancer-associated antigen.
The commercial potential for IMDELLTRA is considerable. Analysts project that it could expand into additional indications beyond ES-SCLC, particularly given DLL3’s expression across a range of neuroendocrine and thoracic malignancies. This potential expansion was a key factor in driving interest from Royalty Pharma, which specializes in acquiring predictable, long-duration royalty streams from high-value therapeutics.
Executive Commentary: Strengthening BeOne’s Balance Sheet
BeOne’s leadership emphasized that the royalty monetization is both a validation of its strategic collaboration with Amgen and a financial milestone that positions the company for long-term growth.
“Today’s announcement is testament to the value of our long-term collaboration with Amgen, the developer of IMDELLTRA, who recognized the potential of BeOne in advancing their oncology pipeline,” said John V. Oyler, Co-Founder, Chairman and Chief Executive Officer of BeOne Medicines. “In the five years since entering into this collaboration, we have executed with purpose in advancing our mission to deliver multiple transformative medicines to more patients worldwide.”
From a financial perspective, the deal strengthens BeOne’s balance sheet by delivering near-term liquidity without sacrificing future growth opportunities. Aaron Rosenberg, Chief Financial Officer of BeOne, highlighted the dual benefit: “This agreement meaningfully accelerates value realization for BeOne, while preserving continued participation in the long-term potential of IMDELLTRA. A strong balance sheet is a hallmark of the most successful companies in our industry, and this transaction provides increased operational and strategic flexibility as we continue to execute our business strategy for the long term.”
Strategic Implications for BeOne
The $885 million upfront capital infusion provides BeOne with immediate resources to support several priorities:
- Pipeline Advancement – With xaluritamig and other candidates in the pipeline, BeOne can accelerate clinical development programs, expand trial sites, and invest in translational research.
- Global Expansion – The company has ambitions to broaden its commercial presence, particularly in Asia and Europe, and stronger cash reserves allow for more aggressive strategic positioning.
- Business Development – The added liquidity gives BeOne flexibility to pursue partnerships, licensing deals, or acquisitions that could complement its oncology portfolio.
- Operational Resilience – Biopharmaceutical development is inherently capital-intensive. This transaction provides BeOne with a cushion against market volatility and positions it to weather potential challenges in the biotech funding environment.
By monetizing a portion of its IMDELLTRA royalty stream now, BeOne reduces risk while retaining upside exposure. The balance between immediate liquidity and long-term participation reflects a carefully considered approach to capital management, aligning with strategies adopted by other leading biopharmaceutical innovators.
Royalty Pharma’s Role and Outlook
Royalty Pharma, the counterparty in this transaction, has a well-established track record of acquiring royalty streams from blockbuster therapies. The company provides non-dilutive funding to innovators in exchange for long-term royalty rights. Its portfolio spans oncology, rare diseases, and other therapeutic areas, giving it a broad exposure to high-growth medicines.
The inclusion of IMDELLTRA further diversifies Royalty Pharma’s portfolio with a high-potential oncology asset. Given the expected expansion of immuno-oncology across tumor types, the deal reinforces Royalty Pharma’s positioning as a key financier of life sciences innovation.
A Transaction Reflecting Broader Industry Trends
The BeOne–Royalty Pharma deal also highlights a growing trend in the biotech sector: the use of royalty monetization as a financing tool. Companies often turn to these transactions to unlock immediate capital without issuing new equity or incurring traditional debt. For smaller biopharma companies, this strategy avoids shareholder dilution while still ensuring access to substantial funding.
In BeOne’s case, the transaction provides nearly a billion dollars in non-dilutive capital—resources that will directly fuel its mission to deliver transformative oncology therapies. At the same time, the deal validates IMDELLTRA’s commercial prospects, sending a strong signal to investors, partners, and the broader oncology community.
As BeOne Medicines looks to the future, the company is well-positioned to advance both its proprietary pipeline and its ongoing collaborations. With strengthened financial resources, continued participation in IMDELLTRA’s long-term success, and ongoing development of next-generation oncology candidates like xaluritamig, BeOne aims to solidify its role as a global leader in cancer therapeutics.
The $950 million royalty transaction not only underscores the current value of IMDELLTRA but also lays the foundation for BeOne’s broader ambitions in oncology. By strategically balancing immediate liquidity with retained future upside, the company has created a pathway toward sustainable growth, innovation, and expanded impact on patients worldwide.
