Arrowhead to receives $500M upfront in licensing pact with Sarepta

Arrowhead (ARWR) announced that the global licensing and collaboration agreement with Sarepta Therapeutics (SRPT) announced on November 26, 2024, has now closed. Closing of the transaction was subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions. Upon closing, Arrowhead receives a $500M upfront payment and $325M through the purchase by Sarepta of Arrowhead common stock priced at $27.25 per share. Arrowhead will also receive $250M to be paid in annual installments of $50M over five years. Arrowhead also has the potential to receive $300M in near-term payments associated with the continued enrollment of certain cohorts of a Phase 1/2 study of ARO-DM1, which Arrowhead is on track to achieve during the next 12 months. Arrowhead is eligible to receive development milestone payments of between $110M and $410M per program and sales milestone payments of between $500M and $700M per program. Arrowhead is also eligible to receive tiered royalties on commercial sales up to the low double digits.