Sarepta Therapeutics Sells Arrowhead Stake for $174mln, Advances RNAi Collaboration

Sarepta Therapeutics has sold 9.27 million shares of Arrowhead Pharmaceuticals in a block trade, receiving at least $174 million in gross proceeds. The sale allows Sarepta to fund a $100 million milestone payment triggered by the advancement of its SRP-1003 program for DM1. The company expects to release preliminary data from the Phase 1/2 study of SRP-1003 in the second half of 2025. Sarepta remains confident in the utility of the siRNA approach and its potential to treat various diseases.

Sarepta Therapeutics, Inc. (NASDAQ: SRPT) has sold 9,265,312 shares of Arrowhead Pharmaceuticals, Inc. (Arrowhead) in a block trade, generating at least $174 million in gross proceeds. The sale will enable Sarepta to fulfill a $100 million milestone payment to Arrowhead, triggered by the advancement of Sarepta's SRP-1003 program for type 1 myotonic dystrophy (DM1).

The milestone payment was triggered after a review of safety data and Arrowhead achieving the first of two predetermined enrollment targets in the Phase 1/2 clinical study of SRP-1003. Sarepta expects to release preliminary data from the study in the second half of 2025.

In addition to the block trade, Sarepta agreed to transfer 2,660,989 shares of Arrowhead common stock to satisfy a $50 million milestone payment obligation. The remaining $50 million milestone payment will be prefunded by Arrowhead.

Doug Ingram, CEO of Sarepta, expressed satisfaction with the progress of the company's siRNA programs, including SRP-1003, and reiterated Sarepta's confidence in the utility of the siRNA approach for treating various diseases. The company is also anticipating early data from its FSHD and DM1 programs in the second half of 2025.

Sarepta's sale of equity in Arrowhead is a strategic decision aimed at funding the milestone payment, but it does not alter the company's conviction in the siRNA approach. Sarepta continues to hold leadership positions in Duchenne muscular dystrophy (Duchenne) and is building a robust portfolio of programs across muscle, central nervous system, and cardiac diseases.

References:
[1] https://www.stocktitan.net/news/SRPT/sarepta-therapeutics-announces-advancement-of-si-rna-collaboration-stlr0n0gi58c.html