09:28 AM EDT, 07/23/2025 (MT Newswires) -- Arrowhead Pharmaceuticals ( ARWR ) said Wednesday it expects Sarepta Therapeutics ( SRPT ) to continue to meet its financial obligations under their exclusive license and collaboration agreement despite recent setbacks that led Sarepta to implement a strategic restructuring plan.

Arrowhead said it is eligible to receive $300 million in near-term payments linked to the enrollment of ARO-DM1 groups in a phase 1/2 study. The company said it expects to earn the first $100 million soon and receive the remaining $200 million by the end of 2025.

Arrowhead said Sarepta hasn't indicated any intention to fail to fulfill its obligations and noted that Sarepta's pipeline review under its restructuring plan prioritizes funding, developing and commercializing programs licensed from Arrowhead.

Should Sarepta fail to make either the $100 million or $200 million near-term payments, Arrowhead said it would have the right to end the deal with respect to ARO-DM1. If Sarepta fails to make any development or commercial milestone payment, Arrowhead said it would have the right to terminate the deal related to the asset for which the payment was owed.

In such cases, Arrowhead said it would get back the program and all related intellectual property rights.

The company added that if Sarepta misses any of the $50 million yearly payments over the next five years, Arrowhead would have the right to terminate the entire agreement and all intellectual property rights licensed to Sarepta would return to Arrowhead.

Sarepta did not immediately respond to MT Newswires' request for comment.

Shares of Arrowhead were up 3% while Sarepta shares were down 0.5% in recent premarket activity Wednesday.