Pharma BD Deal Intelligence

Roche Holding AG / Blueprint Medicines Corporation

2020 · Licensing/Option · $1.7B · Terminated

Roche's $675M upfront licensing bet on Blueprint's pralsetinib (Gavreto) to compete outside the US in RET-altered lung and thyroid cancers ended in termination—Roche walked away in February 2023, handing rights back to Blueprint, which then resold US rights to Rigel for a fraction of the value.

WRONG BY 45 POINTS
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The coverage arc

Jul 14, 2020 GEN - Genetic Engineering and Biotechnology News Bullish

Roche and Blueprint Medicines announced a substantial collaboration to advance pralsetinib, a therapeutic candidate targeting RET-driven cancers, with…

Feb 22, 2023 Blueprint Medicines (PRNewswire) Neutral

Blueprint Medicines to regain global rights to GAVRETO (pralsetinib) ex-Greater China following Roche's decision to terminate the collaboration for strategic…

Feb 22, 2024 Rigel Pharmaceuticals (PRNewswire) Neutral

Rigel Pharmaceuticals to acquire US rights to GAVRETO (pralsetinib) from Blueprint Medicines for up to $117.5M ($15M upfront, up to $102.5M milestones) plus…

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In July 2020 Roche entered an exclusive collaboration and license agreement with Blueprint Medicines for the development and commercialization of pralsetinib (Gavreto), a selective RET kinase inhibitor, outside the United States (excluding Greater China, which was retained by CStone). Roche paid $675M upfront in cash plus a $100M equity investment in Blueprint ($775M total upfront), with Blueprint eligible for up to ~$1.05B in milestones plus tiered royalties on ex-US net sales; the companies were to co-commercialize in the US. On February 22, 2023 Roche notified Blueprint it would terminate the collaboration for strategic reasons (effective 12 months later, ~February 2024), and Blueprint regained global rights ex-Greater China. In February 2024 Blueprint sold US rights to pralsetinib to Rigel Pharmaceuticals for up to $117.5M (including up to $102.5M in milestones) plus tiered royalties. The Roche partnership is therefore terminated; Blueprint received roughly $1B in combined upfront and milestone payments over the life of the agreement.

Key facts

Disease & market context

RET-Altered Cancers (NSCLC, MTC, Thyroid)

8K US cases/yr · $2.0B Global RET Inhibitor Market (2024)

Disease Overview

RET fusions ~2% NSCLC, 10-20% thyroid. Selective RET inhibitors transformed treatment. Pralsetinib subsequently withdrawn from US.

Competitive Landscape

Lilly (Retevmo/selpercatinib) market leader with tumor-agnostic RET approval. Pralsetinib withdrawn, giving selpercatinib near-monopoly.

Advanced Solid Tumor

Competitive Landscape

Pralsetinib (Gavreto) is a selective RET kinase inhibitor approved by the FDA for RET fusion-positive NSCLC (2020) and, with subsequent changes, for RET-altered thyroid cancers; Roche returned US rights to Blueprint in early 2023 amid commercial underperformance. The competitive landscape groups by MOA class: selective RET inhibitors (direct), multi-kinase inhibitors with RET activity (legacy), and tumor-agnostic NTRK/precision backbones (adjacent). In the selective RET class, Lilly's Retevmo (selpercatinib, FDA-approved 2020, expanded to tumor-agnostic RET fusion approval 2022, generating roughly $350M 2024 sales) is the direct head-to-head competitor and the dominant share holder given superior CNS activity and label breadth. Emerging next-generation RET inhibitors designed to overcome solvent-front resistance mutations (G810R/C) include Turning Point/BMS' TPX-0046 (zidesamtinib, Phase 1/2 ARROS-1), Blueprint's own BLU-667 second-generation BLU-242 (development deprioritized), and HUYABIO/other Chinese-market LOXO-260-class assets. In multi-kinase inhibitors with RET activity, legacy agents cabozantinib (Cabometyx, Exelixis, ~$1.9B 2023 sales), vandetanib (Caprelsa, Sanofi, generic), and lenvatinib (Lenvima, Eisai) had previously served RET-altered medullary thyroid cancer before selective agents. Commercial takeaway: pralsetinib lost share to selpercatinib on clinical differentiation; Roche's ex-US rights return signals franchise deprioritization, and the next competitive threat is resistance-mutation-active next-gen selective RET inhibitors.

Deal timeline

Related deals — scored

DealYearValueOutcome
Roche Holding AG / Blueprint Medicines Corporation (this deal)2020$1.7B35
Roche Holding AG / Chugai Pharmaceutical Co. Ltd.2002$1.4B100
Roche Holding AG / Ventana Medical Systems Inc.2008$3.4B88
Roche Holding AG / Corange Ltd. (Boehringer Mannheim Group)1997$11.0B88
Roche Holding AG / Ventana Medical Systems Inc.2007$3.4B88
Roche Holding AG / Foundation Medicine, Inc.2015$1.1B87
Roche Holding AG / Foundation Medicine, Inc.2018$5.3B85

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