Press Release July 14, 2020

Blueprint Medicines Enters Strategic Collaboration Agreement with Roche, Receives $775 Million Upfront Payment with Deal Value of up to $1.7 Billion

The Life Sciences team advised Blueprint Medicines Corporation (NASDAQ:  BPMC) on its global collaboration agreement with F. Hoffmann-La Roche LTD and Genentech, Inc. for the development and commercialization of pralsetinib, an investigational once-daily oral precision therapy for the treatment of people with cancer driven by oncogenic RET alterations, including non-small cell lung cancer (NSCLC), medullary thyroid cancer (MTC), other thyroid cancers and other solid tumors. Under the collaboration, Blueprint Medicines and Genentech will co-commercialize pralsetinib in the U.S. and Roche will obtain exclusive commercialization rights for pralsetinib outside of the U.S., excluding Greater China. 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.

Under the terms of the agreement, 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 in Blueprint Medicines’ common stock at a purchase price of $96.57 per share. Blueprint Medicines will be eligible to receive up to an additional $927 million in contingent payments, including specified development, regulatory and sales-based milestones for pralsetinib and any licensed product containing a next-generation RET compound. In the U.S., Blueprint Medicines and Genentech will work together to co-commercialize pralsetinib, with the companies equally sharing responsibilities, profits and losses. In addition, Blueprint Medicines is eligible to receive tiered royalties ranging from high-teens to mid-twenties on annual net sales of pralsetinib outside the U.S.

Blueprint Medicines is a precision therapy company striving to improve human health. With a focus on genomically defined cancers, rare diseases and cancer immunotherapy, Blueprint Medicines is developing transformational medicines rooted in their leading expertise in protein kinases, which are proven drivers of disease.

The Goodwin team was led by Noelle Dubiansky, Kingsley Taft, and Christopher Denn, with invaluable assistance from Yasin Akbari, Nancy Urizar, Kristina Jacobs, Dan Karelitz, Jonathan LaPlante, Paul Jin, and Matthew Wheatley.

For more details, read the press release and articles in STAT, FierceBiotech, and Endpoints.