We recently published 10 Double-Digit Winners You Wish You Bought Yesterday. Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) is one of the last week’s top performers.
Arrowhead Pharmaceuticals soared by 24.9 percent week-on-week as investors welcomed the company’s receipt of $100 million in payments from Sarepta Therapeutics Inc. (NASDAQ:SRPT) in relation to a licensing agreement previously entered into.
Of the total amount, Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) said $50 million was redeemed in the form of shares, while the remaining $50 million was received in cash.
Investors particularly cheered the election to place the redeemed stocks into the treasury, effectively reducing its total outstanding shares and boosting the value of existing shares.
“We are committed to supporting our broad and long-term collaboration and we are thrilled with the great progress we’ve made on multiple important clinical, preclinical, and discovery stage siRNA programs. While we remain confident that Sarepta will meet its financial obligations to Arrowhead, we believe reducing our outstanding shares by receiving approximately half of the $100 million due from Sarepta in cash and half in Arrowhead stock to be returned to treasury is a compelling opportunity,” Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) President and CEO Christopher Anzalone said.
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The payments were made in satisfaction of Arrowhead Pharmaceuticals, Inc.’s (NASDAQ:ARWR) achievement of the first of two pre-specified enrollment targets in relation to an early-stage clinical trial for the study of ARO-DM1, a therapy candidate for type 1 myotonic dystrophy (DM1).
Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR) said that any subsequent milestones earned will continue to be payable in cash.
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