Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) Q1 2025 Earnings Conference Call February 10, 2025 4:30 PM ET
Company Participants
Chris Anzalone – President & CEO
Bruce Given – Interim Chief Medical Scientist
Andy Davis – SVP & Head of Global Cardio/Metabolic Franchise
James Hamilton – Chief Discovery & Translational Medicine
Ken Myszkowski – CFO
Conference Call Participants
Luca Issi – RBC Capital
David Lebowitz – Citi
Jasmine Fels – UBS
Maury Raycroft – Jefferies
Edward Tenthoff – PSC
Patrick Trucchio – H.C. Wainwright
Mayank Mamtani – B. Riley Securities
Andrea Newkirk – Goldman Sachs
Mani Foroohar – Leerink
Brendan Smith – TD Cowen
Jason Gerberry – Bank of America
Chris Anzalone
Thanks, Vince. Good afternoon, everyone, and thank you for joining us today. Earlier today, we announced that the license and collaboration agreement with Sarepta Therapeutics is closed. Arrowhead expects to receive a $500 million upfront payment in the next 10 days and has already received $325 million through the purchase by Sarepta of Arrowhead common stock priced at $27.25 per share. Arrowhead will also receive $250 million to be paid in annual installments of $50 million over five years and has the potential to receive an additional $300 million in near-term payments associated with the continued enrollment of a Phase I/II study of ARO-DM1, which we are on track to achieve during the next 12 months. Taken together, this adds up to $1.375 billion in cash payments.
We are also eligible to receive development milestone payments of between $110 million and $410 million per program and sales milestone payments between $500 million and $700 million per program. The total potential value of this deal, including upfront payments, equity investments and potential milestone payments exceeds $11 billion. On top of that, we are also eligible to receive tiered royalties on commercial sales. This was clearly a big deal and a critical step for
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