Arrowhead’s New Deal With Takeda Strengthens The Company’s Value Proposition (NASDAQ:ARWR)

Arrowhead Pharmaceuticals (ARWR) is a long-term holding of mine that just recently announced a partnership deal with Takeda (NYSE:TAK) for its ARO-AAT developmental stage therapy. I love this deal and think it yet again shows how well management is strategically and efficiently advancing an impressive pipeline through clinical development.

Arrowhead’s Deal with Takeda is a Win-Win for the Company

On October 8, Arrowhead announced that it had struck a deal with Takeda to co-develop and co-commercialize ARO-AAT, the company’s developmental therapy to treat alpha-1 antitrypsin-associated liver disease (AATLD). The partners will split US profits 50/50, and Takeda received an exclusive license to the therapy in the rest of the world for which Arrowhead will receive 20-25% royalties on net sales.

In exchange for this deal, Takeda is paying Arrowhead $300 million upfront and up to $740 million more in various potential developmental, regulatory, and commercial milestone payments.

I described the

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