Benzinga | Aug 9, 2021 06:15AM EDT

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

* Epizyme Inc (NASDAQ:EPZM) and HUTCHMED (China) Limited (NASDAQ: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.