Gilead Sciences Inc. (GILD) announced Wednesday it's acquiring a promising cancer drug asset from Repare Therapeutics Inc. (RPTX), marking the latest chapter in what's been a busy year of portfolio reshuffling for Repare.

The asset in question is RP-3467, a polymerase theta ATPase inhibitor that Repare has been developing as a potential treatment for several aggressive cancers. The drug is currently being evaluated in the POLAR Phase 1 trial, which is testing its safety and effectiveness both as a standalone therapy and in combination with olaparib. The trial focuses on patients with locally advanced or metastatic epithelial ovarian cancer, metastatic breast cancer, metastatic castration-resistant prostate cancer, and pancreatic adenocarcinoma.

"We are pleased to announce this transaction, which combines Gilead's leading expertise in oncology research and development with RP-3467, a potential best-in-class Polθ ATPase inhibitor," said Steve Forte, President, Chief Executive Officer, and Chief Financial Officer of Repare. "This marks the third and most significant portfolio transaction for Repare this year."

The Financial Details

Under the agreement, Repare will pocket up to $30 million total. That breaks down to $25 million upfront (subject to customary holdbacks and adjustments) plus another $5 million once specified technology transfer activities are completed.

This deal comes at an interesting time for Repare. Back in November, the company agreed to be acquired by XenoTherapeutics Inc. and Xeno Acquisition Corp, a non-profit biotechnology company. Under that arrangement, Repare shareholders are set to receive a cash payment per share based on the company's cash balance at closing.

Here's where it gets better for shareholders: the $25 million upfront payment from Gilead has increased Repare's cash balance, which directly increases what shareholders will receive in the XenoTherapeutics acquisition. Based on the revised cash position, Repare now estimates shareholders will receive approximately $2.20 per common share, up from previous estimates.

Market Reaction

Investors clearly liked the news. RPTX shares jumped 18.43% to $2.56 during premarket trading Wednesday, hitting a new 52-week high. Meanwhile, GILD shares were essentially flat, down just 0.07%.

For Gilead, the acquisition adds another oncology asset to its pipeline as the company continues building out its cancer treatment portfolio. For Repare shareholders waiting for the XenoTherapeutics deal to close, it's an unexpected bonus that directly translates to more cash in their pockets.