Arrowhead Pharmaceuticals Shares Are On The Rise Today: What's Going On?

Arrowhead Pharmaceuticals Inc. ARWR shares are trading higher Tuesday after the company announced a global licensing and collaboration agreement with Sarepta Therapeutics Inc. SRPT. Here’s what you need to know.

What To Know: The partnership grants Sarepta exclusive worldwide rights to Arrowhead's investigational RNA interference (RNAi) therapies for rare genetic diseases targeting muscle, the central nervous system (CNS) and the lungs.

The agreement focuses on Arrowhead's Targeted RNAi Molecule platform, which enables precise delivery of therapies designed to reduce the activity of disease-causing genes.

Arrowhead will receive an upfront payment of $500 million, as well as a $325 million equity investment from Sarepta at a 35% premium. Additional terms include $250 million to be paid in $50 million installments over five years, up to $300 million in near-term milestone payments over the next year and potential tiered royalties on commercial sales.

Arrowhead CEO Christopher Anzalone called the agreement transformative, noting that the influx of capital extends the company's financial runway through 2028. This timeline positions Arrowhead to pursue the commercial launch of its first product, plozasiran, pending regulatory approval.

Sarepta sees the collaboration as a strategic expansion of its portfolio, complementing its expertise in gene therapy and Duchenne muscular dystrophy. Sarepta CEO Doug Ingram highlighted the potential for these RNAi programs to have a significant market impact. As part of the agreement, Ingram will join Arrowhead's Board of Directors.

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“The agreement affords multiple potential blockbuster opportunities, serves our strategic priorities for the remainder of the decade and beyond and diversifies our business model across one-time therapies and chronic treatments allowing for long-term growth and success,” Ingram said.

The collaboration is expected to close in early 2025, pending regulatory approval. Both companies have emphasized the agreement's significance in advancing treatments for rare genetic diseases, with additional details anticipated in their upcoming investor presentations.

ARWR Price Action: Arrowhead Pharmaceuticals shares were up 16.7% at $21.94 at the time of writing, according to Benzinga Pro.

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