Watchmaker Genomics announced a multi-year, co-exclusive agreement with Exact Sciences Corporation to develop and commercialize the breakthrough DNA methylation analysis technology, TET-assisted pyridine borane sequencing (TAPS). Watchmaker will apply its expertise in engineering DNA-modifying enzymes to further improve the TAPS chemistry, ultimately enabling advanced applications, including cancer screening and minimal residual disease (MRD) testing. Under the licensing agreement, Watchmaker may develop and commercialize the TAPS technology under its own brand.

DNA methylation patterns offer dynamic and rich insights into the status of both healthy and diseased tissue. These signatures are stable, relatively abundant, and often measurable in the blood, making them promising biomarkers in minimally invasive liquid biopsies. TAPS has the potential to dramatically improve DNA methylation analysis accuracy by enabling a direct readout of cytosine methylation with less template damage and noise when compared to existing methods.

In addition to the development and licensing agreement, the companies have entered into a long-term strategic supply agreement. Under its terms, Watchmaker will provide Exact Sciences with access to its portfolio of best-in-class sequencing reagents and precision enzymes. These products have the potential to enhance the performance of Exact Sciences' tests while significantly reducing associated costs.