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CAMBRIDGE, Mass. - Repare Therapeutics Inc. (NASDAQ:RPTX), a biotechnology company with a current market capitalization of $61.3 million, has entered into an exclusive worldwide licensing agreement with Swiss-based Debiopharm International S.A. for lunresertib, a first-in-class precision oncology PKMYT1 inhibitor, according to a company press release.
Under the agreement, Repare will receive a $10 million upfront payment and is eligible for up to $257 million in potential milestone payments, including $5 million in near-term payments, plus single-digit royalties on global net sales. According to InvestingPro data, the company maintains a strong financial position with more cash than debt and a healthy current ratio of 7.42x, providing ample liquidity for ongoing operations.
The deal builds upon an existing collaboration between the companies established in January 2024 to study the combination of lunresertib with Debiopharm’s WEE1 inhibitor, Debio 0123. Debiopharm will assume sponsorship of the MYTHIC study and take over development activities related to lunresertib.
"Based on very promising Phase 1/1b clinical data, we believe the combination of lunresertib and Debio 0123 is highly synergistic and could potentially drive rapid and deep tumor regressions," said Bertrand Ducrey, CEO of Debiopharm. While analysts have recently revised earnings estimates upward, InvestingPro analysis suggests the company remains undervalued despite showing strong momentum with a 22.7% return over the past six months.
Following this transaction, Repare will focus on advancing its two ongoing Phase 1 clinical trials. The POLAR trial evaluating RP-3467, a polymerase theta inhibitor, is expected to deliver topline safety and early efficacy data in the third quarter of 2025. The LIONS trial studying RP-1664, a PLK4 inhibitor, is anticipated to provide initial data in the fourth quarter of 2025.
"Our recent business development efforts have continued to enable Repare to focus on the advancement of our clinical priorities and sustained value creation," said Steve Forte, President, CEO and CFO of Repare.
Lunresertib has shown encouraging results across multiple clinical trials in difficult-to-treat solid tumors, according to the company statement. With the stock trading significantly below its 52-week high of $4.29, InvestingPro subscribers can access additional insights, including detailed financial health scores and growth projections.
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