(RTTNews) - Arrowhead Pharmaceuticals (ARWR), a clinical-stage biotech company, announced, on Tuesday, that it has entered into a global licensing and collaboration agreement with Sarepta Therapeutics (SRPT) for a range of clinical and preclinical programs.
The deal is valued at up to $11.3 billion, including $825 million in immediate payments and the potential for additional milestone and royalty payments.
Under the terms of the agreement, Arrowhead will receive $500 million in upfront cash and $325 million through an equity investment from Sarepta, priced at a 35 percent premium.
Additionally, Arrowhead is eligible to receive $250 million in equal installments over five years and up to $300 million in near-term milestone payments. The company is also entitled to royalties from commercial sales and has the potential to earn up to $10 billion in future milestone payments.
In turn, Sarepta has the option to select up to six new targets for Arrowhead to develop using its proprietary Targeted RNAi Molecule (TRiM) platform.
The collaboration focuses on multiple clinical and preclinical programs in rare genetic diseases affecting the muscles, CNS, and lungs.
Arrowhead expects the agreement to close by early 2025 and anticipates it will extend its cash runway through 2028. The deal also brings in strategic expertise from Sarepta, which has a proven track record in rare disease treatments.
ARWR is currently trading at $23.05, up over 22%.
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