Sarepta Therapeutics, Inc. (SRPT) announced on Tuesday a comprehensive global licensing and collaboration agreement with Arrowhead Pharmaceuticals, Inc. (ARWR) to advance numerous programs across various stages, targeting rare genetic diseases affecting muscles, the central nervous system, and lungs.
Furthermore, both companies have formalized a discovery partnership that will explore up to six new potential targets in muscle, cardiac, and/or central nervous system conditions, leveraging Arrowhead's groundbreaking delivery technologies.
Under the terms of this agreement, Arrowhead will receive an initial payment of $500 million, along with a $325 million equity investment through the purchase of its common shares. Additionally, Arrowhead will benefit from annual payouts totaling $250 million, distributed in $50 million installments over five years, supplemented by various milestone payments and royalties.
This collaboration is anticipated to conclude by early 2025 and will be financed using Sarepta's existing cash reserves.
In a strategic corporate move, Sarepta has also announced a share repurchase program, permitting the buyback of up to $500 million worth of its outstanding common stock over an 18-month period.
In pre-market trading, Sarepta's stock has increased by 4.23 percent to $119.50, while Arrowhead's stock has surged by 22.46 percent to $23.01 on the Nasdaq.
