Connect with us

Hi, what are you looking for?

Stock

Arrowhead stock soars on $825M Sarepta Therapeutics deal

On Tuesday, Arrowhead Pharmaceuticals Inc. (NASDAQ:ARWR) shares surged by 32% following the announcement of a comprehensive licensing and collaboration agreement with Sarepta Therapeutics (NASDAQ:SRPT). The transaction, poised to close in early 2025, will see Arrowhead receiving an immediate $825 million, including a $500 million upfront payment and a $325 million equity investment at a 35% premium. Additionally, Arrowhead is set to receive $250 million over the next five years and could earn up to $10 billion in future milestone payments, along with royalties on product sales.

The partnership grants Sarepta access to Arrowhead’s Targeted RNAi Molecule (TRiM™) platform to develop treatments for rare genetic diseases affecting muscles, the central nervous system, and lungs. Sarepta will also have the option to select up to six new targets for Arrowhead to explore in preclinical development.

Arrowhead’s President and CEO, Christopher Anzalone, Ph.D., highlighted the deal’s significance, stating it provides “a transformational amount of capital” and the potential for substantial non-dilutive funding. The agreement is expected to extend Arrowhead’s cash runway into 2028, supporting the launch of its investigational drug plozasiran and the advancement of its pipeline programs.

In conjunction with the agreement, Sarepta’s President and CEO, Doug Ingram, will join Arrowhead’s Board of Directors, bringing his extensive experience in advancing investigational medicines and launching commercial drugs.

Arrowhead is on track to receive an additional $300 million in near-term clinical trial enrollment-related payments within the next 12 months. The company is also eligible for development milestone payments ranging from $110 million to $410 million per program and sales milestone payments between $500 million and $700 million per program. Arrowhead will also earn tiered royalties on commercial sales.

The current clinical programs under the agreement include ARO-DUX4 for facioscapulohumeral muscular dystrophy type 1, ARO-DM1 for type 1 myotonic dystrophy, ARO-MMP7 for idiopathic pulmonary fibrosis, and ARO-ATXN2 for spinocerebellar ataxia 2. Preclinical programs ARO-HTT, ARO-ATXN1, and ARO-ATXN3 are expected to be ready for clinical trial applications in the coming years.

Arrowhead will discuss the details of this agreement during its fiscal year-end results conference call on Tuesday, November 26, 2024, at 4:30 p.m. ET. The closing of the transaction is contingent upon regulatory approvals and customary closing conditions.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

This post appeared first on investing.com

    You May Also Like

    Investing

    In the days since President-elect Donald Trump won the presidential race, Nicole Bivens Collinson’s phone has barely stopped ringing. Collinson, who helps lead the...

    Investing

    Netflix’s cheaper, ad-supported tier has reached 70 million global monthly active users two years after it was launched. The company said Tuesday more than...

    Editor's Pick

    Adani Group shares experienced a rebound on Monday, recovering from last week’s steep losses sparked by U.S. criminal charges against Chairman Gautam Adani and...

    Stock

    Investing.com – Trip.com ADR (NASDAQ: TCOM) reported third quarter EPS of ¥7.05, ¥0.12 better than the analyst estimate of ¥6.93. Revenue for the quarter...



    Disclaimer: Techreportdiversity.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 Techreportdiversity.com