| | | re: SRPT
And on a different note, so whaddya do with a bunch of cash anyway?
Sarepta Therapeutics Announces Global Licensing and Collaboration Agreement with Arrowhead Pharmaceuticals for Multiple Clinical and Preclinical siRNA Programs
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– Sarepta obtains exclusive worldwide licenses to four clinical-stage and three preclinical-stage programs in muscle, central nervous system, and rare pulmonary disorders, including potential best-in-class siRNA-based treatments for DM1 and FSHD
– Additionally, Arrowhead and Sarepta have entered into a discovery partnership pursuant to which Sarepta will nominate, and Arrowhead will deliver, IND-ready constructs for six targets across skeletal muscle, cardiac, and CNS
– Investigational treatments leverage Arrowhead’s leading Targeted RNAi Molecule (TRiMTM) platform, capable of deep and durable target-gene knockdown
– Upon closing, Arrowhead to receive $500 million in an upfront payment and $325 million equity investment at a 35% premium, plus additional future milestone payments and royalties
– Separately, Sarepta’s Board of Directors has approved a share repurchase authorization of up to $500 million
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So they're committing $825M up front for this deal, and up to another $500M in share repurchase. The last Q statement had them with $1.2B in cash & equivalents. I guess I can't criticize them for sitting on their cash ;)
Not that using up all their cash worries me. First, SRPT is profitable, with income going up nicely Y/Y (although the Q/Q numbers vary a lot). Second, they've authorized "up to $500M", which means they have room to adjust.
I have to remember that this is not an acquisition though, so SRPT isn't responsible for Arrowheads ongoing losses...
And up 3% or so pre-market so "the street" doesn't think this is a bad thing. At least so far... |
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