Repare Therapeutics Inc. (Nasdaq: RPTX) has out-licensed its discovery platforms to DCx Biotherapeutics, a newly-launched Canadian biotechnology company developing precision drug conjugates, in a strategic move to focus resources on its clinical-stage oncology pipeline.
The transaction, announced today, includes the transfer of Repare's clinically-validated SNIPRx platform and early discovery-stage SNIPRx-surf and STEP2 platforms, along with related intellectual property. Additionally, DCx will retain approximately 20 of Repare's preclinical research employees and acquire lease rights to laboratory facilities in Montreal.
Under the terms of the agreement, Repare will receive upfront and near-term payments totaling $4 million, a 9.99% common equity position in DCx with dilution protection rights, and the right to appoint one nominee to DCx's board of directors. The company is also eligible for potential future out-licensing, clinical, and commercial milestone payments, as well as low-single-digit tiered sales royalties on products developed by DCx.
"We have taken careful steps to evaluate all aspects of our business to ensure continued value generation, and this out-licensing agreement with DCx for our discovery platforms enables us to further focus on our clinical portfolio and drive cost reductions while maintaining an economic interest in the platform technologies we have developed," said Steve Forte, President, Chief Executive Officer and Chief Financial Officer of Repare.
Platform Technologies and Capabilities
The transaction includes multiple discovery platforms that leverage cutting-edge genomic and CRISPR technologies:
The SNIPRx platform utilizes synthetic lethality approaches for the discovery and development of novel cancer therapeutics focused on genomic instability and DNA damage repair pathways.
The SNIPRx-surf platform identifies cell surface targets based on gene expression and protein features in tumors or cancer models, incorporating clinically relevant biomarkers and machine learning algorithms.
The STEP2 platform is a chemogenomic discovery platform that uses CRISPR-enabled genetic screens with small molecule inhibitors to identify clinically relevant genetic lesions sensitive to small molecule inhibitors.
These technologies have been instrumental in building Repare's current clinical pipeline, which includes RP-3467 (a Polθ ATPase inhibitor), RP-1664 (a PLK4 inhibitor), and lunresertib (a PKMYT1 inhibitor), all currently in Phase 1 clinical trials.
Strategic Refocus on Clinical Development
The out-licensing agreement represents a strategic pivot for Repare, allowing the company to concentrate resources on advancing its clinical-stage assets while maintaining potential upside from its discovery platforms through equity ownership and milestone payments.
"We look forward to reporting initial data from our two ongoing Phase 1 clinical trials in the second half of 2025, and continue to evaluate partnering and strategic alternatives across our portfolio assets," Forte added.
The transaction also provides continuity for Repare's discovery platforms, as DCx will integrate these technologies into its MuSic™ platform, which combines CRISPR-based high-throughput functional screening with deep bioinformatics to advance a pipeline of immune-stimulatory precision antibody drug conjugates.
About the Companies
Repare Therapeutics is a clinical-stage precision oncology company that has pioneered synthetic lethality approaches to discover and develop targeted cancer therapies. The company's genome-wide, CRISPR-enabled SNIPRx® platform has been used to systematically identify and develop highly targeted cancer therapies focused on genomic instability, particularly DNA damage repair mechanisms.
DCx Biotherapeutics, supported by Amplitude Ventures, is a preclinical-stage discovery and translational company developing multi-modal synergistic-targeting therapeutics for cancer. The company aims to create therapies with improved efficacy and tolerability while minimizing resistance, focusing on genetically-defined cancers.
Market and Industry Context
The transaction comes amid a challenging funding environment for biotechnology companies, with many firms strategically reallocating resources to extend their cash runway and focus on near-term value drivers.
For Repare, the deal represents a way to monetize its discovery platforms while maintaining focus on clinical-stage assets that are closer to potential regulatory approval and commercialization. The company will continue to advance its three clinical candidates while evaluating additional partnering opportunities across its portfolio.
For DCx, acquiring these validated discovery platforms provides immediate technological capabilities and scientific expertise that would otherwise take years and significant investment to develop internally.
Looking Forward
Repare expects to report initial data from its two ongoing Phase 1 clinical trials in the second half of 2025. The company will continue to evaluate additional partnering and strategic alternatives across its portfolio assets while maintaining an economic interest in the future success of its discovery platforms through its equity stake in DCx and potential milestone and royalty payments.
The transaction highlights the evolving landscape of biotechnology partnerships, where companies increasingly seek creative ways to maximize the value of their technology platforms while focusing resources on advancing their most promising clinical candidates.
