Repare Therapeutics Jumps 20% on $30M Gilead Asset Sale
The deal to sell a cancer drug candidate sweetens the terms of Repare's pending acquisition, boosting the cash payout for shareholders.
Shares of Repare Therapeutics (NASDAQ: RPTX) surged approximately 20% in pre-market trading on Wednesday after the company announced a deal to sell one of its cancer drug candidates to Gilead Sciences, Inc. (NASDAQ: GILD) for up to $30 million. The transaction provides a significant cash infusion that directly enhances the payout for Repare shareholders in the company's separate, pending acquisition by XenoTherapeutics, Inc.
Under the terms of the agreement, Gilead will acquire Repare's Polθ (polymerase theta) ATPase inhibitor program, including the clinical candidate RP-3467. Repare will receive an upfront payment of $25 million, with an additional $5 million contingent on the successful completion of technology transfer activities, according to a company announcement.
This asset sale is a crucial development in the context of Repare’s planned acquisition by the private entity XenoTherapeutics. The upfront cash from Gilead will bolster Repare's balance sheet just before the finalization of that deal. As a result, the estimated per-share cash consideration that Repare shareholders are set to receive upon the closing of the XenoTherapeutics merger has increased to approximately $2.20 per share. This represents a 21% increase from a previous estimate of $1.82, directly converting the asset sale into additional shareholder value.
The deal serves as a final strategic success for Repare, a company specializing in precision oncology through a concept known as synthetic lethality. This approach develops therapies that target specific genetic vulnerabilities in cancer cells. The asset acquired by Gilead, RP-3467, is a small molecule inhibitor designed to be potent in tumors with specific alterations, such as BRCA mutations, and is currently being evaluated in a Phase 1 clinical trial for various advanced solid tumors.
The transaction is significant for Repare, with the total consideration representing nearly a third of its roughly $96 million market capitalization. For Gilead, the acquisition adds a promising clinical-stage asset to its oncology pipeline, validating the scientific platform that Repare has developed. Analysts noted the deal as a positive step for both companies, highlighting the strategic fit for Gilead and the immediate financial return for Repare's investors.
Repare’s stock, which trades on the Nasdaq, saw significant activity on the news before the market opened. Following a close at $2.14 on the previous trading day, the price jumped in early Wednesday trading as investors reacted to the sweetened buyout terms.
The final step for the overarching acquisition by XenoTherapeutics now hinges on a shareholder vote scheduled for January 16, 2026. The approval would lock in the enhanced cash payout for investors, concluding a series of value-generating portfolio moves by Repare's management ahead of the company's sale.