Why Repare Therapeutics Stock Is Skyrocketing Today
After the market closed Wednesday, Repare Therapeutics (NASDAQ: RPTX) announced that it had entered into a licensing and collaboration deal with Roche (OTC: RHHBY) for its experimental cancer drug, camonsertib, also known as RP-3500. In the wake of that news, Repare shares skyrocketed, and were up by 36.5% as of 11:58 a.m. ET on Thursday.
Major deals with big partners almost always provide solid catalysts for biotech stocks. The spectacular gain for Repare Thursday seems to be warranted, especially in light of the details of its agreement with the Swiss healthcare giant.
Repare will receive $125 million up front from Roche. It also could receive up to $1.2 billion in contingent milestone payments if camonsertib hits certain clinical, regulatory, commercial, and sales goals. Up to $55 million of that total could be received in the near term. If camonsertib wins regulatory approval, Repare stands to receive royalties on net sales in the high-single-digit to high-teens percentages.
Source Fool.com
