RPTX - 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.
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Why Repare Therapeutics Stock Is Skyrocketing Today