Repare Therapeutics shares rise by 25% after it announced its collaboration deal with Roche

Repare Therapeutics Inc (NASDAQ: RPTX), a top clinical-stage precision oncology corporation, announced that it’s executed a collaboration and worldwide license deal with Roche for both the commercialization and development of RP-3500 (also known as camonsertib). This new shot up the company’s stock price by 25%.

Camonsertib is a selective and potent oral tiny molecule inhibitor of Rad3 and Ataxia-Telangiectasia based protein kinase which is designed to treat tumors using synthetic-lethal genomic alterations. Under the collaboration agreement, Roche will be responsible for the development of RP-3500 with the opportunity to expand development efforts into additional tumors.

How does top management feel?

Repare Therapeutics’ Head of Business & Corporate Development and Executive Vice President, Kim Seth, said:

The EVP claims that RP-3500 has the potential to treat people with cancer across several solid tumor issues as a monotherapy. James Sabry, Roche’s Global Head of Pharma Partnering, said:

Details of the agreement

According to the collaboration deal, Repare Therapeutics will get an upfront payment of about $125 million, and the company is eligible to get as much as $1.2 billion in sales, commercial, regulatory and clinical milestones, including up to around $55 million in near-term payments, as well as any royalties from worldwide net sales that range from high teens to high-single-digits.

The collaboration deal also offers Repare Therapeutics with the chance to access a 50-50 United States profit share and co-development arrangement. If the company opts to exercise this option, it will be eligible to receive certain milestone payments.