Sarepta Sells $174 Million Stake in Arrowhead to Fund Milestone Payment Amid Cash Crunch
Sarepta Therapeutics sold 9.26 million shares of Arrowhead Pharmaceuticals in a privately negotiated block trade, raising at least $174 million in cash.1234
The sale was executed to stretch Sarepta’s cash runway and, in particular, to fund a $100 million milestone payment to Arrowhead, triggered by the advancement of Sarepta's SRP-1003 program for type 1 myotonic dystrophy (DM1).1234
As part of the deal, Sarepta transferred 2.66 million shares back to Arrowhead to satisfy $50 million of the $100 million milestone obligation, with the remainder paid in cash.134
The milestone was triggered after a safety review and Arrowhead meeting the first of two predetermined enrollment targets in a Phase 1/2 trial of SRP-1003; preliminary data from the trial is expected in the second half of 2025.24
Sarepta’s cash position was $510.6 million at the end of Q2 2025, with additional obligations of up to $200 million in future milestone payments tied to further trial progress.13
The transaction occurs within the context of a larger licensing and collaboration agreement between Sarepta and Arrowhead, worth $500 million upfront (November 2024) to develop four RNAi therapies targeting different rare diseases.45
Analysts view the move as prudent for Sarepta's financial stability but note that more work is required to strengthen its position, particularly regarding upcoming siRNA data.1
Sources:
1. https://www.fiercebiotech.com/biotech/sarepta-sells-174m-arrowhead-stock-stretch-cash-runway-transfers-shares-pay-half-milestone
2. https://www.ainvest.com/news/sarepta-therapeutics-sells-arrowhead-stake-174mln-advances-rnai-collaboration-2508/
3. https://www.biopharmadive.com/news/sarepta-arrowhead-stock-sale-partnership-sirna-dm1/757648/
4. https://www.zacks.com/stock/news/2712573/sarepta-sells-arrowhead-stake-to-fund-milestone-payment