Arrowhead Pharmaceuticals Inc. ARWR develops medicines to treat intractable diseases. The company’s therapies trigger the RNA interference to alter target genes, as a natural process of gene silencing.
What Happened
Arrowhead announced entrance into a $3.7-billion license and collaboration agreement with Janssen Pharmaceuticals, a unit of Johnson & Johnson JNJ. This funding will consist of $250 million upon closing, as well as an upfront payment from Janssen and a $75 million equity investment from Johnson & Johnson Innovation.
This deal was created for the development and commercialization of ARO-HBV, or “the company’s third generation subcutaneously administered RNA interference (RNAi) therapeutic being developed as a potentially curative therapy for patients with chronic hepatitis B virus (HBV) infection,” according to the company website.
Why It’s Important
"This agreement represents an important next step for ARO-HBV. Arrowhead has established a leadership position in the field over the past several years, and Janssen's proven development capabilities, global commercial reach, and commitment to HBV make it the ideal partner to potentially accelerate our goal of bringing a functional cure to patients with chronic HBV," said Arrowhead's president and CEO Christopher Anzalone.
Through this partnership, the research and development for hepatitis B will become more advanced, more researched and more far-reaching, as Janssen demonstrates strong international exposure.
What’s Next
Janssen will receive an exclusive license to the treatment, as the company will have the ability to choose targets for potential clinical candidates. The closing of the transactions is expected to occur during the fourth quarter of 2018.
Arrowhead's stock was down more than 9 percent to $16.72 at time of publication
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