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PASADENA, Calif. - Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR), a biotechnology company with a market capitalization of $2.75 billion, announced Wednesday it will receive approximately $50 million worth of its own common stock from Sarepta Therapeutics as partial payment of a recently earned $100 million milestone. The remaining $50 million will be received in cash.
The shares received from Sarepta will be placed into Arrowhead’s treasury, effectively reducing the number of outstanding shares. This transaction represents a direct stock buyback opportunity that the company has elected to pursue. The stock has shown strong momentum recently, with a 9.14% return over the past week.
The $100 million milestone payment, announced on July 28, was triggered after Arrowhead reached the first of two prespecified enrollment targets and received authorization to dose escalate in a Phase 1/2 clinical study of ARO-DM1, an investigational RNA interference therapeutic for type 1 myotonic dystrophy. InvestingPro analysis shows that analysts anticipate significant sales growth, with 6 analysts recently revising their earnings estimates upward.
In a separate transaction completed Wednesday after market close, Sarepta sold its remaining holdings of Arrowhead common stock in a negotiated block trade. Prior to this sale, Sarepta owned 11,926,301 shares of Arrowhead stock.
Christopher Anzalone, Arrowhead’s President and CEO, stated that the company believes this arrangement represents "a compelling opportunity" given Arrowhead’s current stock price and growth potential. He noted that any subsequent milestones earned will continue to be payable in cash.
The company reported that its current financial position is expected to fund operations into fiscal 2028. According to InvestingPro data, Arrowhead maintains strong liquidity with a current ratio of 4.87 and operates with a moderate level of debt. For deeper insights into Arrowhead’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.
This information is based on a press release statement from Arrowhead Pharmaceuticals.
In other recent news, Arrowhead Pharmaceuticals reported its fiscal third-quarter 2025 financial results, which showed a net loss of $1.26 per share. This was below analysts’ expectations, which had projected a loss of $0.86 per share. The company’s revenue also fell short, coming in at $27.8 million compared to the forecasted $53.9 million. Additionally, Arrowhead received a $100 million milestone payment from Sarepta Therapeutics for achieving the first enrollment target in the Phase 1/2 trial of ARO-DM1. A second enrollment target, expected by the end of 2025, could result in an additional $200 million payment. In terms of analyst activity, Leerink Partners adjusted its price target for Arrowhead Pharmaceuticals from $22.00 to $21.00, maintaining a Market Perform rating. These developments provide a snapshot of the company’s current financial and strategic position.
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