RPTX Stock Soars Pre-Market After Gilead Agrees To Acquire Investigational Cancer Drug

• The deal includes an upfront payment of $25 million and an additional $5 million payment upon completion of specified technology transfer activities.
• Repare’s investigational cancer treatment, RP-3467, is a highly potent small-molecule inhibitor targeting polymerase theta.
• The treatment is currently being evaluated in the POLAR Phase 1 clinical trial to evaluate its safety, pharmacokinetics, pharmacodynamics, and preliminary activity.

Repare Therapeutics Inc. (RPTX) shares soared more than 21% in Wednesday’s pre-market trade after the company announced a deal with Gilead Sciences Inc. (GILD) for its investigational cancer treatment.

Repare stated that Gilead has agreed to acquire polymerase theta (Polθ) ATPase inhibitor, RP-3467, for a total consideration of $30 million. This includes an upfront payment of $25 million and an additional $5 million payment upon completion of specified technology transfer activities.

Retail sentiment on Stocktwits around Repare Therapeutics trended in the ‘extremely bullish’ territory at the time of writing.

Gilead Sciences shares were up around 1% in Wednesday’s pre-market trade. Retail sentiment around the company trended in the ‘neutral’ territory.

More About Repare’s Cancer Treatment

Repare’s investigational cancer treatment, RP-3467, is a highly potent small-molecule inhibitor targeting polymerase theta. This is associated with BRCA mutations and other genomic alterations.

A BRCA mutation is a harmful change in the BRCA1 or the BRCA2 genes that increases the risk for several cancers, including breast, ovarian, prostate, pancreatic, and others. This mutation is inherited and has no symptoms.

Repare’s treatment is currently being evaluated in the POLAR Phase 1 clinical trial to evaluate its safety, pharmacokinetics, pharmacodynamics, and preliminary activity.

Boosting Repare’s Cash Balance

Repare stated that the Gilead deal has increased its cash balance, and it is the third portfolio deal entered into by the company this year.

Following this deal, Repare estimates that its shareholders will receive $2.2 per share in the pending transaction with XenoTherapeutics Inc. Last month, XenoTherapeutics entered into a definitive agreement to acquire all the issued and outstanding common shares of Repare.

Under the deal’s terms, Repare’s shareholders were expected to receive approximately $1.82 in cash per share, along with one non-transferable contingent value right (CVR) per common share. This CVR entitles holders to receive certain future cash payments over 10 years.

RPTX stock is up 61% year-to-date, while GILD stock is up 34%.

Also See: Is The Stock Market Open Today? Here Are NYSE, Nasdaq Trading Hours On Christmas Eve

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