Epizyme Stock Gains On Potential $310M Pact With HUTCHMED For Cancer-Focused Tazverik In Greater China

Epizyme Inc EPZM and HUTCHMED (China) Limited HCM have collaborated to research, develop, manufacture, and commercialize Tazverik (tazemetostat) in Greater China, including mainland China, Hong Kong, Macau, and Taiwan.
Tazverik is a methyltransferase inhibitor of EZH2 developed by Epizyme, approved by the FDA for epithelioid sarcoma and certain patients with follicular lymphoma.
Under the terms of the agreement, Epizyme will receive a $25 million upfront payment and can receive up to an additional $110 million in development and regulatory milestone payments across up to eight potential indications and up to an additional $175 million in sales milestone payments.
Epizyme is also eligible to receive tiered royalties of mid-teen to low-twenties percent based on annual net sales.
In addition, HUTCHMED receives a four-year warrant to acquire up to $65 million of Epizyme shares at $11.50/share.
HUTCHMED plans to develop and seek approval for Tazverik in various hematological and solid tumors.
HUTCHMED to host webcast and conference call today at 9:30 a.m. E.T.
Price Action: EPZM shares are up 15.6% at $7.48 during the premarket session on the last check Monday, while HCM stock closed at $41.93 on Friday.