Sarepta to pay Arrowhead $500M + in licensing deal for siRNA-based treatments

TipRanks

Wed, Nov 27, 2024, 5:21 AM 2 min read

Sarepta Therapeutics (SRPT), the leader in precision genetic medicine for rare diseases announced an exclusive global licensing and collaboration agreement with Arrowhead (ARWR) Pharmaceuticals ( ARWR). Sarepta will obtain exclusive global rights to multiple clinical, preclinical, and discovery-stage programs for rare, genetic diseases of the muscle, central nervous system CNS , and the lungs. The agreement will add meaningfully to Sarepta’s mid- and early-stage pipeline, complementing the Company’s existing leadership in Duchenne muscular dystrophy and limb-girdle muscular dystrophies and gene therapy, while adding new indications and expanding into adjacent therapeutic areas. In addition, Doug Ingram, president and chief executive officer, Sarepta, will be appointed to Arrowhead’s Board of Directors… “With the launch of Elevidys going exceedingly well, this broad siRNA collaboration with Arrowhead provides a synergistic platform to complement Sarepta’s gene therapy and gene editing engine….Given the strength of our performance and ability to generate substantial cash to invest in our business over the next several years, Sarepta’s Board of Directors has approved a $500M share repurchase program as part of our overall capital allocation strategy,” said Mr. Ingram. Over the course of the next 12-18 months, we expect to share multiple data readouts from across our pipeline.”…Under the terms of the agreement, Sarepta will pay Arrowhead an upfront payment of $500M and an equity investment of $325 million in Arrowhead common stock, priced at a 35% premium to the 30-day volume weighted average price prior to the announcement of the agreement. Arrowhead will also receive $250M to be paid in annual installments of $50 M over five years, in addition to being eligible for future milestone payments and royalties. Arrowhead will be responsible for Phase 1/2 trials currently underway, and clinical stage programs will transition to Sarepta no later than the completion of current trials. Preclinical assets will transition to Sarepta upon completion of IND-enabling activities by Arrowhead. The deal will be funded with cash on hand and Sarepta does not plan to raise additional capital via the debt or equity capital markets. The transaction is expected to close early 2025, subject to the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and other customary conditions.