Sarepta Inks Global Licensing Deal With Arrowhead, Announces $500 Mln Share Buyback Program

(RTTNews) - Sarepta Therapeutics, Inc. (SRPT), Tuesday announced a global licensing and collaboration agreement with Arrowhead Pharmaceuticals, Inc. (ARWR) for multiple clinical, pre-clinical, and discovery-stage programs for rare, genetic diseases of the muscle, central nervous system, and lungs.

Also, the companies have inked a discovery partnership for up to six additional muscle, cardiac, and/or CNS targets, using Arrowhead's novel delivery technologies.

In exchange, Arrowhead will receive an upfront payment of $500 million and an equity investment of $325 million in its common stock. The company will also receive $250 million in annual installments of $50 million over five years, along with milestone payments and royalties.

The deal, expected to end in early 2025, will be funded with cash on hand, Sarepta added.

Moreover, the biotechnology company announced a share repurchase program of upto $500 million of its outstanding common stock over the next 18 months.

During the pre-market hours, Sarepta's stock is climbing 4.23 percent, to $119.50, and Arrowhead's stock is moving up 22.46 percent, to $23.01 on the Nasdaq.