• Roche will pay Nurix $700 million up front, with up to $1.6 billion in future payouts if certain development, regulatory, and sales milestones are achieved.
• Bexobrutideg is aimed at treating, among other things, chronic lymphocytic leukaemia, a type of blood cancer that has a characteristic of recurring in patients even after initial treatment.
• Nurix and Roche will tag-team and commercialize bexobrutideg in the United States.

Shares of Nurix Therapeutics (NRIX) surged on Monday after the U.S. drug company struck a landmark deal with Swiss pharmaceutical giant Roche (RHHBY) to develop blood cancer therapies, valued at up to $2.3 billion.

As part of their exclusive licensing and collaboration agreement, the duo will focus on developing and commercializing Nurix’s investigational Bruton’s Tyrosine Kinase degrader, bexobrutideg.

At the time of writing, NRIX stock was up nearly 70% but had shed some premarket gains, trading 50% higher and remaining the top gainer among equities on Stocktwits.

Financial Terms Of The NRIX Deal

Roche will pay Nurix $700 million up front, with up to $1.6 billion in future payouts if certain development, regulatory, and sales milestones are achieved. The companies will share drug development costs in a 60:40 ratio, with Roche assuming the larger share of the expense, and profits will be split equally between the two.

Nurix and Roche will tag-team and commercialize bexobrutideg in the United States. Outside the U.S., Roche will take over those same duties and pay Nurix a percentage of sales royalties ranging in the low to high teens.

The transaction is expected to close in the third quarter this year.

The Blood Cancer Therapy In Focus

Nurix’s bexobrutideg is aimed at treating, among other things, chronic lymphocytic leukaemia, a type of blood cancer that has a characteristic of recurring in patients even after initial treatment.

The therapy has the potential to tap into a $41 billion market, and studies suggest it could become the most effective treatment option, with greater tolerability than existing drugs.

“We believe bexobrutideg could represent a major leap forward in the fight against complex blood cancers and other diseases. We are proud to join forces with Nurix to accelerate these potential breakthroughs,” said Levi Garraway, Roche’s chief medical officer and head of global product development.

What Retail Traders Think About NRIX

On Stocktwits, retail sentiment about the NRIX stock remained in ‘bullish’ territory over the last 24 hours amid ‘high’ message volumes. One user on the platform thinks the stock has more room to run.

NRIX stock has lost nearly 23% in value so far this year but has gained more than 17% over the last 12 months.

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