Sarepta deal with Arrowhead creates major catalysts, says BMO Capital

Sarepta’s (SRPT) partnership with Arrowhead (ARWR), under which Sarepta will provide $1.4B in upfront, equity, and milestone payments in exchange for exclusive worldwide license of four clinical and three preclinical programs in muscle, central nervous system, and pulmonary indications, is positive for Sarepta and creates major near-term catalysts and opportunities for upside, BMO Capital tells investors in a research note. The firm, which made no change to its Outperform rating or $200 price target, says the deal grants access to a very promising and competitive siRNA platform in terms of drug modality, target, and delivery, and complements Sarepta’s neuromuscular portfolio, while addressing investor skepticism around limited growth following treatment of Duchenne muscular dystrophy prevalent population or lack of near-term major catalysts.