Sarepta Licenses Multiple Clinical Programs from Arrowhead, Takes Equity Stake

Rare Daily Staff

Sarepta Therapeutics entered into a global licensing and collaboration agreement with Arrowhead Pharmaceuticals and taking an equity stake in the company in a deal worth $825 million at close could get an additional $300 million in near-term payments.

Arrowhead will receive $500 million in cash as an upfront payment and an additional $325 million as an equity investment priced at a 35 percent premium. Arrowhead will get $250 million to be paid in equal installments of $50 million over five years and is eligible to receive an additional $300 million in near-term payments, which Arrowhead is on track to achieve during the next 12 months.

Arrowhead is eligible to receive royalties on commercial sales and up to approximately $10 billion in future potential milestone payments. The transaction is expected to close in early 2025.

The agreement covers multiple clinical and preclinical programs in rare, genetic diseases of the muscle, central nervous system, and lungs. It also allows Sarepta to select up to six new targets for Arrowhead to conduct discovery and preclinical development activities, which can utilize Arrowhead’s proprietary and differentiated Targeted RNAi Molecule platform.

“For Arrowhead, this strategic transaction accomplishes several important goals that we see as critical to our success as we move from a development stage company operating in several therapeutic areas to a more focused commercial stage company over the coming years,” said Christopher Anzalone, president and CEO at Arrowhead. “It provides us with a transformational amount of capital immediately and the potential for significant non-dilutive cash throughout the duration of the collaboration.”

Anzalone said the transaction is expected to extend Arrowhead’s cash runway into 2028 and potentially through multiple new drug launches, including wholly owned and partnered programs.

At the close of the agreement, Doug Ingram, president and CEO of Sarepta, will be appointed to the Arrowhead board of directors.

“The agreement marks the start of a synergistic relationship with Arrowhead’s leading siRNA technology and Sarepta’s proven success in bringing rare disease treatments to patients,” said Ingram. “Together, we will expedite the development of Arrowhead’s promising scientific approach and bring best-in-class treatments to patients with devastating rare diseases where treatment options are limited or do not exist.”

Photo: Christopher Anzalone, president and CEO at Arrowhead Pharmaceuticals