By Ben Glickman
Sarepta Therapeutics and Arrowhead Pharmaceuticals said they have entered a licensing and collaboration agreement worth more than $1 billion.
Sarepta will secure exclusive global rights to multiple programs for rare genetic diseases affecting muscles, the central nervous systems and lungs, the company said. Sarepta Chief Executive Doug Ingram will also be appointed to the Arrowhead board.
In exchange, Arrowhead will receive $825 million at closing, which includes $500 million in cash and $325 million in an equity investment priced at a 35% premium. Arrowhead will also receive $250 million in future payments, paid in installments over the next five years.
Arrowhead shares rose 15% to $21.63 after the agreement was announced, while Sarepta shares were up 2.9%.
Arrowhead is eligible to receive $300 million in additional payments based on certain study enrollment milestones, which the company said it was on track to meet in the next year.
Arrowhead said it could receive future milestone payments of up to $10 billion, and would get tiered royalties on commercial sales up to the low double digits.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
November 26, 2024 07:41 ET (12:41 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.
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