Repare Therapeutics Stock Rises As Gilead Secures Cancer Asset For $30 Million

Gilead Sciences Inc. (NASDAQ:GILD) on Wednesday agreed to acquire Repare Therapeutics Inc.’s (NASDAQ:RPTX) polymerase theta (Polθ) ATPase inhibitor, RP-3467.

RP-3467 is being evaluated in the POLAR Phase 1 trial to evaluate its safety, pharmacokinetics, pharmacodynamics, and preliminary activity alone or in combination with olaparib in adults with locally advanced or metastatic epithelial ovarian cancer, metastatic breast cancer, metastatic castration-resistant prostate cancer, or pancreatic adenocarcinoma.

“We are pleased to announce this transaction, which combines Gilead’s leading expertise in oncology research and development with RP-3467, a potential best-in-class Polθ ATPase inhibitor,” said Steve Forte, President, Chief Executive Officer, and Chief Financial Officer of Repare. “This marks the third and most significant portfolio transaction for Repare this year.”

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Under the terms of the Gilead agreement, Repare will receive up to $30 million in total consideration, including a $25 million upfront payment, subject to customary holdbacks and adjustments, and an additional $5 million payment upon completion of specified technology transfer activities.

In November, XenoTherapeutics Inc. and Xeno Acquisition Corp, a non-profit biotechnology company, agreed to acquire Repare Therapeutics.

Under the agreement, Repare shareholders will receive a cash payment per common share that will be determined based upon Repare’s cash balance.

The upfront portion of the consideration payable under the Gilead Agreement has increased Repare’s cash balance and, therefore, has also increased the estimated closing net cash amount.

Based on Repare’s revised estimate of the closing net cash amount, it is now estimated that each Repare shareholder will receive a cash payment of approximately $2.20 per common share.

Price Action: RPTX shares were up 18.43% at $2.56 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data. GILD was down 0.07%.

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