Arrowhead Expects $300 Million From Sarepta as Partnership Endures Setbacks

Arrowhead Pharmaceuticals moved to reassure investors on Wednesday, saying its licensing and collaboration agreement with Sarepta Therapeutics remains intact and that it expects to collect about $300 million in milestone payments tied to patient enrolment for the ARO-DM1 study before the end of the year. The California-based RNA-therapy developer added that Sarepta has given no indication it will miss any obligations under the multibillion-dollar deal signed earlier this year. Under the February 2025 agreement, Sarepta paid Arrowhead $500 million upfront and invested a further $325 million in equity priced at $27.25 a share. The contract also calls for five annual instalments of $50 million beginning in February 2026 and leaves Arrowhead eligible for as much as $10 billion in additional development and commercial milestones, plus tiered royalties. If Sarepta fails to make the agreed payments, Arrowhead can terminate parts—or all—of the collaboration and retain cash already received. The statement comes as Sarepta faces mounting pressure following the death of a 51-year-old participant in its SRP-9004 gene-therapy trial and heightened FDA scrutiny of its approved Duchenne treatment, Elevidys. Sarepta’s shares have fallen about 90 % this year and were trading near $13.40 on Wednesday; Bank of America Securities earlier in the day downgraded the stock to Underperform and slashed its price target to $10 from $20. Arrowhead’s reassurance lifted its own stock roughly 4 % in pre-market trading to above $15.50. The company said its balance sheet and potential new partnerships would allow it to continue advancing its pipeline even if it ultimately chooses to invoke termination clauses should Sarepta default.