US-based companies Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) and Sarepta Therapeutics (NASDAQ: SRPT) have announced a significant global licensing agreement valued at up to USD 11.38 billion. This expansive deal encompasses multiple clinical and preclinical programs targeting rare, genetic diseases affecting the muscle, central nervous system (CNS), and the lungs.
Strategic Collaboration for Precision Genetic Medicine
The agreement allows Sarepta to select up to six new targets for development. Arrowhead will then apply its proprietary Targeted RNAi Molecule (TRiM) platform to conduct discovery and preclinical development activities. These efforts will complement Sarepta’s established leadership in precision genetic medicine for rare diseases.
Financial Terms and Immediate Impact
Upon closing, Arrowhead will receive USD 825 million, which includes USD 500 million in cash and a USD 325 million equity investment priced at a 35% premium. Additionally, Arrowhead is set to receive USD 250 million in equal installments over five years and is eligible for an additional USD 300 million in near-term payments, expected to be achieved within the next 12 months. The company is also poised to receive royalties on commercial sales and potential milestone payments totaling approximately USD 10 billion.
Board Appointment and Future Outlook
Sarepta’s president and CEO, Doug Ingram, will join the Arrowhead Board of Directors as part of the deal. Christopher Anzalone, Ph.D., president and CEO at Arrowhead, stated, “We estimate that this transaction extends Arrowhead’s cash runway into 2028 and potentially through multiple new drug launches, including wholly owned and partnered programs. We now turn our focus as a company to launching investigational plozasiran for the treatment of familial chylomicronemia syndrome potentially in 2025, pending FDA review and approval, which would be our first commercial product.”-Fineline Info & Tech
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