Blueprint Medicines inks degrader deal with Proteovant worth up to $652 million

US precision therapy company Blueprint Medicines’ (Nasdaq: BPMC) shares dipped more than 2% to $61.62 early today, after it announced a strategic collaboration with Proteovant Therapeutics to advance novel targeted protein degrader therapies to address important areas of medical need.

Targeted protein degradation harnesses the body's natural protein disposal system and offers the potential to develop new medicines that target historically difficult-to-drug proteins that play an important role in causing serious diseases.

Subject to the terms of the agreement, Proteovant will receive a $20 million upfront payment and will be eligible to receive up to an additional $632 million in potential research, development, regulatory and commercialization milestone payments plus tiered royalties from mid- to high-single digits on net sales on the first two program targets, subject to adjustment in specified circumstances. Of the total contingent payments, up to $105 million would be pre-clinical, clinical development and regulatory milestones and up to $527 million would be approval and sales milestones.