Roche Holding Ltd. unit Genentech said it would terminate its licensing agreement to develop and commercialize NewLink Genetics Corp.'s investigational drug GDC-0919.
GDC-0919 belongs to a class of immunotherapies called IDO inhibitors, which block a pathway that slows down the body's natural immune response to cancer.
Genentech made an up-front payment of $150 million to NewLink under the October 2014 agreement and its termination would return the rights of GDC-0919 back to NewLink.
NewLink Genetics stocks were down 31.59% to $7.26 per share as of 12:20 p.m. ET on June 8.