Sarepta Sells Arrowhead Stock, Activates $100M Milestone Payment

Sarepta Therapeutics has sold approximately 9.3 million shares of Arrowhead Pharmaceuticals in a private block trade, anticipating gross proceeds of at least $174 million. The sale activates a $100 million milestone payment. Sarepta previously held around 11.9 million shares of Arrowhead stock.

Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) has announced that Sarepta Therapeutics has sold approximately 9.3 million shares of Arrowhead Pharmaceuticals in a private block trade, generating gross proceeds of at least $174 million. This sale activates a $100 million milestone payment to Arrowhead, as previously agreed upon [1].

Sarepta Therapeutics, which held around 11.9 million shares of Arrowhead stock, sold the majority of its holdings in the block trade. The remaining shares were sold in a separate negotiated block trade, with the proceeds used to satisfy a $100 million milestone payment to Arrowhead [2].

The milestone payment is part of a broader collaboration between Arrowhead and Sarepta, which includes the development of ARO-DM1, an investigational RNA interference (RNAi) therapeutic for the treatment of type 1 myotonic dystrophy (DM1). Arrowhead reached the first of two prespecified enrollment targets and subsequent authorization to dose escalate in a Phase 1/2 clinical study of ARO-DM1, triggering the milestone payment [1].

Arrowhead Pharmaceuticals has elected to receive approximately $50 million worth of Arrowhead common stock from Sarepta, which will be placed into treasury and reduce the number of Arrowhead shares outstanding. The remainder of the milestone payment, or approximately $50 million, will be received in cash [1].

The stock sale and milestone payment demonstrate Sarepta's continued commitment to supporting the collaboration with Arrowhead. Arrowhead's President and CEO, Christopher Anzalone, Ph.D., commented on the transaction, stating that reducing the outstanding shares and strengthening the balance sheet is an attractive option given the company's growth potential [1].

References:
[1] https://www.morningstar.com/news/business-wire/20250813886473/arrowhead-pharmaceuticals-redeems-approximately-50-million-of-arrowhead-stock-and-will-receive-approximately-50-million-in-cash-in-satisfaction-of-milestone-from-sarepta-therapeutics
[2] https://www.businesswire.com/news/home/20250813886473/en/Arrowhead-Pharmaceuticals-Redeems-Approximately-%2450-Million-of-Arrowhead-Stock-and-Will-Receive-Approximately-%2450-Million-in-Cash-in-Satisfaction-of-Milestone-from-Sarepta-Therapeutics