Precision oncology company Repare Therapeutics Inc (Nasdaq: RPTX) announced on Wednesday that it has entered into a definitive asset purchase agreement with Gilead Sciences Inc for the sale of its polymerase theta ATPase inhibitor RP-3467, with total consideration of up to USD30m.

The agreement provides for USD25m in upfront cash to Repare Therapeutics, subject to customary holdbacks and adjustments, and a further USD5 million payment contingent on completion of specified technology transfer activities.

Transaction strengthens Repare Therapeutics' cash position ahead of its previously announced acquisition by XenoTherapeutics, Inc. and Xeno Acquisition Corp., under which Xeno will acquire all outstanding Repare common shares. Shareholder consideration is based on Repare's closing net cash balance after deductions for transaction costs and liabilities.

Proceeds from the Gilead Sciences transaction have increased the estimated closing net cash amount, resulting in an updated expectation that Repare shareholders will receive approximately USD2.20 per common share at closing.

RP-3467 is a small-molecule Polθ inhibitor targeting synthetic lethality associated with BRCA mutations and other genomic alterations and is currently being evaluated in the POLAR Phase 1 clinical trial across multiple advanced solid tumour indications.