Biopharmaceutical company Epizyme Inc (Nasdaq: EPZM) on Monday reported the exercise of its option to sell USD50m of its common stock to Royalty Pharma under the terms of a funding agreement.

Royalty Pharma was notified of Epizyme Inc's exercise of the prespecified option when the trailing average share price reached the USD20 per share cap. The closing of the sale and issuance of the shares is subject to the satisfaction or waiver of customary conditions.

The additional capital, combined with its existing cash, cash equivalents and marketable securities of USD381m will support Epizyme's planned launch of tazemetostat for epithelioid sarcoma and follicular lymphoma, with PDUFA date set for 23 January 2020, as well as the launch of potential value-creating initiatives into 2022.

For 20120, Epizyme plans to achieve US FDA approval for the launch tazemetostat for patients with metastatic or locally advanced epithelioid sarcoma and relapsed or refractory follicular lymphoma (FL), both with and without EZH2 activating mutations, complete and advance the confirmatory trial in the front-line epithelioid sarcoma treatment setting, complete the safety evaluation of tazemetostat in combination with (Revlimid plus Rituximab) as well as pursue additional development candidates for its preclinical programmes.