Arrowhead Pharmaceuticals Announces $500 Million Strategic Financing Facility with Sixth Street
Arrowhead Pharmaceuticals (NASDAQ: ARWR) has secured a $500 million strategic financing facility with Sixth Street, strengthening its balance sheet with long-term, non-dilutive capital. The deal includes $400 million funded at close and the potential for an additional $100 million. This financing immediately enhances Arrowhead's ability to advance plozasiran towards a 2025 launch and expands possibilities to fund innovation across its RNAi therapeutics pipeline.
The seven-year credit facility bears an annual interest rate of 15% and matures on August 7, 2031. It provides flexible repayment mechanics, aligning outflows with future inflows from partnerships, collaborations, and commercial revenue. This structure allows Arrowhead to confidently build its commercial capabilities while supporting growth and innovation across its pipeline.
Arrowhead Pharmaceuticals (NASDAQ: ARWR) ha ottenuto un finanziamento strategico di 500 milioni di dollari con Sixth Street, rafforzando il suo bilancio con capitale a lungo termine e non diluitivo. L'accordo prevede un finanziamento di 400 milioni di dollari al momento della chiusura e la potenzialità per ulteriori 100 milioni di dollari. Questo finanziamento migliora immediatamente la capacità di Arrowhead di portare plozasiran verso un lancio nel 2025 e amplia le possibilità di finanziare l'innovazione nel suo pipeline di terapie RNAi.
La linea di credito di sette anni prevede un tasso d'interesse annuo del 15% e scade il 7 agosto 2031. Essa offre meccanismi di rimborso flessibili, allineando le uscite con le future entrate provenienti da partenariati, collaborazioni e ricavi commerciali. Questa struttura consente ad Arrowhead di costruire con sicurezza le proprie capacità commerciali, supportando al contempo la crescita e l'innovazione nel proprio pipeline.
Arrowhead Pharmaceuticals (NASDAQ: ARWR) ha obtenido un financiamiento estratégico de 500 millones de dólares con Sixth Street, fortaleciendo su balance con capital a largo plazo y no dilutivo. El acuerdo incluye 400 millones de dólares financiados al cierre y la posibilidad de otros 100 millones de dólares adicionales. Este financiamiento mejora de inmediato la capacidad de Arrowhead para avanzar plozasiran hacia un lanzamiento en 2025 y amplía las posibilidades de financiar la innovación en su pipeline de terapias RNAi.
La línea de crédito a siete años tiene una tasa de interés anual del 15% y vence el 7 de agosto de 2031. Ofrece mecanismos de reembolso flexibles, alineando salidas con futuras entradas de asociaciones, colaboraciones e ingresos comerciales. Esta estructura permite a Arrowhead construir con confianza sus capacidades comerciales mientras apoya el crecimiento y la innovación en su pipeline.
Arrowhead Pharmaceuticals (NASDAQ: ARWR)는 Sixth Street와 함께 5억 달러의 전략적 금융 지원을 확보하여 비희석성 장기 자본으로 재무 구조를 강화했습니다. 이 계약에는 닫을 때 제공되는 4억 달러와 추가적으로 1억 달러를 받을 수 있는 가능성이 포함되어 있습니다. 이 자금조달은 Arrowhead가 2025년 출시를 위한 plozasiran을 추진할 수 있는 능력을 즉각적으로 강화하고 RNAi 치료제 파이프라인 전반에 걸쳐 혁신을 지원할 수 있는 가능성을 확장합니다.
7년 만기 신용 시설은 연 15%의 이자율을 적용하며 2031년 8월 7일 만료됩니다. 이 자금은 파트너십, 협업 및 상업적 수익으로부터의 미래 유입과 맞물려 유연한 상환 메커니즘을 제공합니다. 이러한 구조는 Arrowhead가 상업적 역량을 자신 있게 구축할 수 있도록 하며, 동시에 파이프라인 전반에 걸쳐 성장과 혁신을 지원합니다.
Arrowhead Pharmaceuticals (NASDAQ: ARWR) a sécurisé un financement stratégique de 500 millions de dollars avec Sixth Street, renforçant son bilan avec du capital à long terme et non dilutif. L'accord comprend 400 millions de dollars financés à la clôture et la possibilité d'un montant supplémentaire de 100 millions de dollars. Ce financement améliore immédiatement la capacité d'Arrowhead à faire avancer plozasiran vers un lancement en 2025 et élargit les possibilités de financement de l'innovation dans son pipeline de médicaments à base d'ARNi.
La facilité de crédit de sept ans porte un taux d'intérêt annuel de 15% et arrive à échéance le 7 août 2031. Elle propose des mécanismes de remboursement flexibles, alignant les sorties avec les futures entrées provenant de partenariats, de collaborations et de revenus commerciaux. Cette structure permet à Arrowhead de développer en toute confiance ses capacités commerciales tout en soutenant la croissance et l'innovation à travers son pipeline.
Arrowhead Pharmaceuticals (NASDAQ: ARWR) hat eine strategische Finanzierungsfazilität in Höhe von 500 Millionen US-Dollar mit Sixth Street gesichert und damit seine Bilanz mit langfristigem, nicht verwässerndem Kapital gestärkt. Der Deal umfasst 400 Millionen US-Dollar, die bei Abschluss bereitgestellt werden, sowie die Möglichkeit für weitere 100 Millionen US-Dollar. Diese Finanzierung verbessert sofort die Fähigkeit von Arrowhead, plozasiran auf einen Launch im Jahr 2025 voranzutreiben, und erweitert die Möglichkeiten zur Finanzierung von Innovationen in seinem RNAi-Therapeutika-Pipeline.
Die siebenjährige Kreditfazilität hat einen jährlichen Zinssatz von 15% und läuft am 7. August 2031 aus. Sie bietet flexible Rückzahlungsmechanismen, die Ausflüsse mit zukünftigen Zuflüssen aus Partnerschaften, Kooperationen und kommerziellen Einnahmen ausrichten. Diese Struktur ermöglichet es Arrowhead, seine kommerziellen Fähigkeiten mit Zuversicht auszubauen und gleichzeitig das Wachstum und die Innovation in seiner Pipeline zu unterstützen.
- Secured $500 million strategic financing facility, with $400 million funded at close
- Non-dilutive capital strengthens balance sheet for long-term growth
- Enhances ability to advance plozasiran towards 2025 commercial launch
- Flexible repayment structure aligns with future revenue streams
- Expands funding for innovation across RNAi therapeutics pipeline
- High annual interest rate of 15% on the credit facility
- All principal due at maturity in 2031, potentially creating future financial pressure
- Secured by substantially all assets of the company, potentially limiting future financing options
Insights
This $500 million strategic financing is a significant move for Arrowhead Pharmaceuticals. The non-dilutive nature of the deal is particularly noteworthy, as it allows the company to access substantial capital without impacting existing shareholders. The
The 15% interest rate is relatively high, reflecting the risk associated with biotech investments. However, the flexible repayment structure, aligned with future inflows, mitigates some of this burden. The seven-year term gives Arrowhead ample time to commercialize its pipeline, particularly plozasiran. This deal structure demonstrates investor confidence in Arrowhead's potential and provides a buffer against short-term market volatility.
This financing deal is a strategic masterstroke for Arrowhead Pharmaceuticals. It provides the necessary capital to advance plozasiran towards a 2025 launch, a critical milestone for the company. The focus on familial chylomicronemia syndrome (FCS) with plozasiran targets a rare disease with high unmet need, potentially leading to premium pricing and orphan drug benefits.
The deal's structure allows Arrowhead to build commercial capabilities while continuing to invest in its RNAi therapeutics pipeline. This dual focus on near-term commercialization and long-term innovation is important in the competitive biotech landscape. The risk-sharing features of the agreement also suggest that Sixth Street sees significant potential in Arrowhead's platform technology and pipeline assets, which could be a positive signal for other investors and potential partners.
This financing deal positions Arrowhead Pharmaceuticals favorably in the rapidly evolving RNAi therapeutics market. The $500 million facility not only strengthens Arrowhead's balance sheet but also signals strong investor confidence in the company's technology and pipeline. This could potentially attract more partnerships and collaborations, further validating Arrowhead's platform.
The focus on commercializing plozasiran by 2025 is timely, as the RNAi therapeutics market is projected to grow significantly in the coming years. Arrowhead's ability to fund both near-term commercialization and long-term pipeline development could give it a competitive edge. However, investors should monitor the company's progress in meeting clinical and regulatory milestones, as well as its ability to manage the high interest rate of the facility in the context of its overall financial strategy.
- Balance sheet strengthened with long-term, non-dilutive capital
-
- Immediately enhances Arrowhead’s ability to advance plozasiran towards a 2025 launch
- Expands possibilities to fund innovation and growth across Arrowhead’s robust and diverse pipeline of RNAi therapeutics
“This deal and its favorable structure and economics allow us to confidently build our commercial capabilities to support our first commercial launch in 2025, provided we receive regulatory approval for plozasiran in familial chylomicronemia syndrome. This transaction is non-dilutive and has an attractive repayment structure, which largely aligns outflows with future inflows, allowing us to keep more cash in the business at a critical time of growth. In addition, because of the flexible repayment mechanics during the seven-year term, it has important risk sharing features. Not only does the facility allow us to support plozasiran as we move toward a commercial launch, it also expands our ability to fund growth and innovation across our pipeline,” said Christopher Anzalone, Ph.D., President and CEO at Arrowhead.
Jeff Pootoolal, Partner at Sixth Street and Michael Reslinski, Managing Director added, "Arrowhead Pharmaceuticals has an impressive platform technology, attractive pipeline assets with promising commercial opportunities, and multiple partnerships maturing toward commercialization. We are pleased to utilize our firm’s scale, expertise and flexibility to help Arrowhead meet its strategic objectives through this innovative financing solution, and we hope to continue strengthening our relationship with the company as it rapidly becomes one of the most exciting emerging commercial-stage biopharmaceutical companies."
The credit facility matures on August 7, 2031, and bears interest at an annual rate of
TD Cowen acted as financial advisor and Gibson, Dunn & Crutcher LLP served as legal advisor to Arrowhead. Proskauer Rose LLP and Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC acted as legal advisors to Sixth Street.
About Sixth Street
Sixth Street is a global investment firm with over
About Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals develops medicines that treat intractable diseases by silencing the genes that cause them. Using a broad portfolio of RNA chemistries and efficient modes of delivery, Arrowhead therapies trigger the RNA interference mechanism to induce rapid, deep, and durable knockdown of target genes. RNA interference, or RNAi, is a mechanism present in living cells that inhibits the expression of a specific gene, thereby affecting the production of a specific protein. Arrowhead’s RNAi-based therapeutics leverage this natural pathway of gene silencing.
For more information, please visit www.arrowheadpharma.com, or follow us on X (formerly Twitter) at @ArrowheadPharma or on LinkedIn. To be added to the Company's email list and receive news directly, please visit http://ir.arrowheadpharma.com/email-alerts.
Safe Harbor Statement under the Private Securities Litigation Reform Act:
This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Any statements contained in this release except for historical information may be deemed to be forward-looking statements. Without limiting the generality of the foregoing, words such as “may,” “will,” “expect,” “believe,” “anticipate,” “hope,” “intend,” “plan,” “project,” “could,” “estimate,” “continue,” “target,” “forecast” or “continue” or the negative of these words or other variations thereof or comparable terminology are intended to identify such forward-looking statements. In addition, any statements that refer to projections of our future financial performance, trends in our business, expectations for our product pipeline or product candidates, including anticipated regulatory submissions and clinical program results, prospects or benefits of our collaborations with other companies, or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements include, but are not limited to, statements about the initiation, timing, progress and results of our preclinical studies and clinical trials, and our research and development programs; our expectations regarding the potential benefits of the partnership, licensing and/or collaboration arrangements and other strategic arrangements and transactions we have entered into or may enter into in the future; our beliefs and expectations regarding milestone, royalty or other payments that could be due to or from third parties under existing agreements; and our estimates regarding future revenues, research and development expenses, capital requirements and payments to third parties. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of numerous factors and uncertainties, including the impact of the ongoing COVID-19 pandemic on our business, the safety and efficacy of our product candidates, decisions of regulatory authorities and the timing thereof, the duration and impact of regulatory delays in our clinical programs, our ability to finance our operations, the likelihood and timing of the receipt of future milestone and licensing fees, the future success of our scientific studies, our ability to successfully develop and commercialize drug candidates, the timing for starting and completing clinical trials, rapid technological change in our markets, the enforcement of our intellectual property rights, and the other risks and uncertainties described in our most recent Annual Report on Form 10-K, subsequent Quarterly Reports on Form 10-Q and other documents filed with the Securities and Exchange Commission from time to time. We assume no obligation to update or revise forward-looking statements to reflect new events or circumstances.
Source: Arrowhead Pharmaceuticals, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808218819/en/
Arrowhead Contacts:
Arrowhead Pharmaceuticals, Inc.
Vince Anzalone, CFA
626-304-3400
ir@arrowheadpharma.com
Investors:
LifeSci Advisors, LLC
Brian Ritchie
212-915-2578
britchie@lifesciadvisors.com
Media:
LifeSci Communications, LLC
Kendy Guarinoni, Ph.D.
724-910-9389
kguarinoni@lifescicomms.com
Sixth Street Contact:
Patrick Clifford
646-906-4339
pclifford@sixthstreet.com
Source: Arrowhead Pharmaceuticals, Inc.
FAQ
What is the total value of Arrowhead Pharmaceuticals' (ARWR) new financing facility?
How much of the financing is immediately available to Arrowhead Pharmaceuticals (ARWR)?
What is the interest rate on Arrowhead Pharmaceuticals' (ARWR) new credit facility?
When does Arrowhead Pharmaceuticals (ARWR) plan to launch plozasiran?
What is the maturity date of Arrowhead Pharmaceuticals' (ARWR) new credit facility?
