RPTX Soars 32.12% on Surprise XenoTherapeutics Acquisition, Rides CVR Wave

Repare Therapeutics (RPTX) surged 32.12% in pre-market trading on Monday, November 18, 2025, following the announcement of a surprise acquisition agreement with XenoTherapeutics, a Massachusetts-based non-profit biotech. The stock’s sharp rise reflects market anticipation of a cash-plus-contingent-value-right (CVR) deal structure that could unlock long-term upside for shareholders.

The transaction, valued at approximately $78 million, involves an estimated $1.82 per-share cash payment and a non-transferable CVR tied to future receivables, partnership milestones, and asset sales. The deal, expected to close in Q1 2026 pending approvals, has triggered classic merger-arbitrage dynamics, with RPTX trading near its implied cash price while factoring in limited but non-zero value for the CVR. TD Cowen downgraded the stock to Hold, citing minimal CVR valuation and positioning RPTX as a short-term arbitrage opportunity rather than a long-term growth story.

The CVR mechanism introduces multi-decade potential from partnerships with Bristol Myers Squibb, Debiopharm, and DCx Biotherapeutics, as well as monetization of pipeline assets like RP-1664 and RP-3500. However, market participants remain cautious, discounting uncertain future cash flows. Repare’s strong cash position—$112.6 million as of Q3 2025—supports the transaction’s financial viability but does not offset skepticism around the CVR’s long-term value.

Shareholder litigation inquiries and regulatory hurdles, including Québec court approval, could delay the deal but have not dented investor confidence. The stock’s trajectory remains tied to deal certainty and CVR clarity, with arbitrageurs likely to dominate trading activity until closing.