Arvinas and its partner Pfizer have reached a long-awaited licensing agreement for Veppanu, the first-of-its-kind “PROTAC” breast cancer medicine. According to the announcement on May 12, 2026, the companies have transferred global ownership of the drug to San Francisco-based Rigel Pharmaceuticals.
Financial structure and transaction details The deal includes a comprehensive payment framework:
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Upfront payment: Arvinas and Pfizer will receive $75 million in near-term cash.
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Transition milestone: An additional $15 million following the completion of transition activities.
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Future incentives: The partners are eligible for up to $320 million in regulatory and commercial milestones, along with sales royalties. In exchange, Rigel gains full global rights to Veppanu, including the authority to establish partnerships for markets outside the United States.
Market position and product challenges Veppanu (formerly vepdegestrant) recently made history as the first protein-degrading medicine (PROTAC) to reach the market for a common subtype of breast cancer. Despite this milestone, its financial outlook remained uncertain after clinical data showed it was most effective in patients with ESR1 gene mutations, rather than a broader patient population. Furthermore, Veppanu faces stiff competition from recently approved hormone-degrading drugs by Eli Lilly and Menarini.
Strategic implications for the partners The divestment of Veppanu enables Arvinas to pivot its focus toward other promising programs in its R&D pipeline. For Rigel Pharmaceuticals, the addition of Veppanu strengthens its portfolio of marketed oncology treatments. Rigel’s leadership anticipates that the therapy will become a major revenue driver, contributing significantly to the company’s long-term financial growth.