BMY - Repare Therapeutics: What Roche And Bristol-Myers Squibb See

2023-03-09 02:23:23 ET

Summary

• Today, we take our first look at a promising developmental concern called Repare Therapeutics.
• The company has significant collaboration deals with drug giants Roche and Bristol-Myers Squibb as well as some early-stage candidates in its pipeline.
• An investment analysis follows in the paragraphs below.

All the world's a stage and most of us are desperately unrehearsed .”? Seán O'Casey

Today, we put Repare Therapeutics Inc. ( RPTX ) in the spotlight for the first time. The company posted fourth quarter results last week. In addition, the firm has a couple of significant big pharma partnerships and multiple ' shots on goal '. Repare is also well-funded for the time being. We take a look at this promising developmental concern via the analysis below.

Company Overview:

Repare Therapeutics is a clinical-stage precision oncology company based out of Montreal, Canada. Currently the stock trades just over ten bucks a share and sports an approximate market capitalization of $430 million.

Repare Therapeutics' development approach centers around a CRISPR-enabled SNIPRx platform to identify and develop highly targeted therapeutics for tumors that contain a mutation in one gene of an SL pair, making them prime candidates for intervention by targeting the other gene in the pair. According to the company's website Repare has:

Systematically analyzed genomic data from approximately 60,000 tumor samples and identified an initial set of clinically relevant genomic alterations, or tumor lesions, that are linked to genomic instability. These tumor lesions are present in approximately 30% of tumors and are largely mutually exclusive ."

The company has a fairly early staged pipeline as can be seen above. In this article, we will focused on the company's candidates in its pipeline that are in clinical stage development.

The company's lead program centers around compound called camonsertib which is also known as RP-3500.

Camonsertib is a potent and selective oral small molecule inhibitor of ATR that is being developed for the treatment of tumors with mutations in ATM, which forms a SL pair with ATR. The mechanism of action for this candidate is highlighted nicely in the slide above. RP -3500 is partnered with drug giant Roche ( OTCQX:RHHBY ) . This agreement was reached early in June of 2022. The details of this collaboration deal can be seen below.

Two Phase 1/2 studies around RP -3500 are currently actively recruiting individuals to participate in these studies, the details of which can be accessed by clicking here .

The other clinical stage compound Repare has in development is dubbed RP - 6306. This candidate is a highly potent and selective PKMYT1 inhibitor. RP-6306 preferentially kills tumor cells overexpressing CCNE1 .

It has been shown to inhibit the growth of a broad range of CCNE1-amplified tumors in xenograft/PDX preclinical models. Both as a single agent and as part of a combination therapy.

Three Phase 1 clinical trials around RP - 6306 are currently actively recruiting individuals to participate in these studies, the details of which can be accessed by clicking here .

In addition, the company has a is partnered in development with Bristol-Myers Squibb ( BMY ) . The two partners are working together to identify the targets within this arrangement (details below).

Analyst Commentary & Balance Sheet:

So far in 2023, Capital One initiated the stock as an Over Weight with a $28 price target in early January. After fourth quarter results came out last week, Morgan Stanley maintained its Hold rating and $14 price target on RPTX while Berenberg Bank reissued its Buy rating and $31 price target on the equity.

Approximately nine percent of the outstanding float of the shares are currently held short. A director sold $4 million worth of shares early in December. That is the only insider activity in the stock since the second quarter of 2022. The company held cash and marketable securities of $343.9 million at the end of FY2022. Management believes this will be sufficient to fund planned operations into 2026. The company had a net loss of $31.7 million during the fourth quarter.

Verdict:

So what can we conclude around Repare Therapeutics at this stage of its journey? Well, let's start with a technology platform and developmental approach that has drawn the interest and collaboration deals with two major drug giants. Add in several compounds in the pipeline targeting multiple indications. The company also has funding in place to advance its pipeline in development.

That said, all five early stage studies planned for its two primary candidates are currently in the enrollment process. Repare is many years away from any potential commercialization as well. Let's also add in some mixed views within the analyst community around the stock at the moment.

Given all that, Repare Therapeutics definitely is a name investors should keep an eye on as its story develops. For more aggressive investors, a small ' watch item ' holding within a well-diversified biotech portfolio seems merited. This is a company we will likely revisit sometime in 2024 as its pipeline advances.

Life is not like water. Things in life don't necessarily flow over the shortest possible route .”? Haruki Murakami

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