Loxo Oncology, which is creating medicines for patients with genetically defined cancers, has announced a partnership with pharmaceutical giant Bayer that could be worth more than $1 billion to the Stamford-based firm.

Both larotrectinib and Loxo-195, which focus on treating cancers with abnormalities known as “tropomyosin receptor kinase gene fusions,” are under development.

The agents have the potential to fulfill the promise of precision medicine, where tumor genetics rather than tumor site of origin define the treatment approach for patients.