Arrowhead Pharmaceuticals Inc (NASDAQ:ARWR) entered a drug development deal with GlaxoSmithKline Plc (NYSE:GSK), under which GSK will develop and market Arrowhead's potential treatment for patients with fatty liver disease NASH.

• Under the pact, Arrowhead would get an upfront payment of $120 million and is in line for an extra $30 million to start a Phase 2 trial and another $100 million if Phase 2 is successful and leads to a Phase 3.
• Arrowhead is also eligible for additional milestone payments, including up to $190 million at the first commercial sale and $590 million in sales-related milestone payments.
• The drug candidate ARO-HSD is currently in an early-to-mid stage trial for nonalcoholic steatohepatitis (NASH).
• GSK will receive an exclusive license to develop and sell ARO-HSD in all territories except Greater China, which Arrowhead will retain.
• Arrowhead said it is also eligible to receive tiered royalties on net product sales.
• Price Action: ARWR shares closed lower by 2.57% at $69.28, while GSK closed 0.72% lower at $41.29 on Monday.