Arrowhead Pharmaceuticals Sees 24.9% Surge Amid $100 Million Licensing Deal with Sarepta Therapeutics

Arrowhead Pharmaceuticals (ARWR) stock surged 24.9% on receipt of $100 million in payments from Sarepta Therapeutics (SRPT) under a licensing agreement. The payments, which included $50 million in cash and $50 million in shares, were made in satisfaction of Arrowhead's achievement of a pre-specified enrollment target for its ARO-DM1 therapy candidate for type 1 myotonic dystrophy (DM1). The remaining milestones will be payable in cash.

Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) saw its stock surge by 24.9% following the receipt of a $100 million payment from Sarepta Therapeutics, Inc. (SRPT) under a licensing agreement. The payment, which included $50 million in cash and $50 million in Arrowhead common stock, was made in satisfaction of Arrowhead's achievement of a pre-specified enrollment target for its ARO-DM1 therapy candidate for type 1 myotonic dystrophy (DM1).

Arrowhead Pharmaceuticals announced the milestone payment on August 13, 2025, stating that the company elected to receive $50 million in Arrowhead common stock and $50 million in cash. This payment is part of a broader agreement that includes a $100 million milestone, with the remaining milestones to be paid in cash [1].

The milestone payment reflects significant progress in Arrowhead's clinical trials for ARO-DM1, a potential RNA interference (RNAi) therapeutic for DM1. The payment was triggered after Arrowhead reached the first of two prespecified enrollment targets and subsequent authorization to dose escalate in a Phase 1/2 clinical study [1].

Sarepta Therapeutics, which previously owned 11,926,301 shares of Arrowhead stock, sold the balance of its remaining holdings in a separate negotiated block trade. This move is part of Sarepta's broader financial strategy to address its financial challenges and fulfill obligations related to the SRP-1003 trial for DM1 [2].

Analysts predict a potential upside of 54.59% for Sarepta's stock price, with a one-year target of $31.54. GuruFocus estimates a 642.25% increase in Sarepta's value based on historical and future performance metrics [2].

Arrowhead Pharmaceuticals, with a strong balance sheet anticipated to fund the company into fiscal 2028, views the direct stock buyback of Arrowhead shares from Sarepta as an attractive option given the current stock price and significant growth potential [1].

References:
[1] https://ir.arrowheadpharma.com/news-releases/news-release-details/arrowhead-pharmaceuticals-redeems-approximately-50-million
[2] https://www.ainvest.com/news/sarepta-therapeutics-raises-174-million-selling-arrowhead-pharmaceuticals-shares-analysts-predict-significant-upside-stock-price-2508/