Blueprint Medicines Corp. (NASDAQ: BPMC) announced early on Tuesday that it had entered into a global collaboration with pharmaceutical giant Roche in which it may receive up to $1.7 billion. The collaboration is centered around developing and commercializing pralsetinib for the treatment of non-small cell lung cancer (NSCLC), medullary thyroid cancer (MTC), other thyroid cancers and other solid tumors.
Under the terms of the agreement, Blueprint Medicines will grant Roche an exclusive worldwide license excluding Greater China and the United States, and a co-exclusive license in the United States to develop and commercialize pralsetinib. Additionally, Roche will have the right to opt in to a next-generation RET compound co-developed under the collaboration.
The companies also plan to expand development of pralsetinib in multiple treatment settings and explore development of a next-generation RET inhibitor as part of this collaboration.
In terms of the numbers, Blueprint Medicines will receive $775 million in upfront payments, including a cash payment of $675 million and an equity investment by Roche of $100 million. Also, Blueprint Medicines will be eligible to receive up to an additional $927 million in contingent payments.
The collaboration combines Blueprint Medicines’ pralsetinib and Roche’s global reach and portfolio of cancer therapies. Marketing applications for pralsetinib are submitted or planned for RET fusion-positive NSCLC, RET mutation-positive MTC and RET fusion-positive thyroid cancer in the United States, Europe and other geographies.
Blueprint Medicine’s management noted that with Roche’s global reach and expertise in personalized health care, this collaboration will accelerate the company’s ability to bring pralsetinib to patients with significant medical needs around the world. The collaboration also will expand the development of pralsetinib across multiple treatment settings, where there is potential to benefit even broader patient populations.
Blueprint Medicines stock traded up about 1% to $77.73 on Tuesday, in a 52-week range of $43.29 to $102.98. The consensus price target is $90.07.