Takeda Pharmaceutical Company Ltd. (TAK) and Arrowhead Pharmaceuticals Inc. said they are in a collaboration and licensing agreement to develop ARO-AAT to treat alpha-1 antitrypsin-associated liver disease.
Takeda and Arrowhead will co-develop ARO-AAT which, if approved, would be co-commercialized in the U.S. under a 50/50 profit-sharing structure. Outside the U.S., Takeda would lead global commercialization and receive an exclusive license to commercialize ARO-AAT, with Arrowhead eligible to receive tiered royalties of 20%-25% on net sales.
Arrowhead will receive an upfront payment of $300 million and can get potential development, regulatory and commercial milestones up to $740 million.
Arrowhead shares were up 5% premarket, to $50.30.
"AAT-associated liver disease is a devastating condition for which there are no approved therapies. With its RNAi- based mechanism of action, ARO-AAT has the potential to treat the underlying cause of AATLD, thereby helping patients avoid the need for liver transplantation and associated co-morbidities," said Asit Parikh, head of the gastroenterology therapeutic area unit at Takeda.
Alpha-1 antitrypsin-associated deficiency is a rare genetic disorder associated with liver disease in children and adults and pulmonary disease in adults.
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(END) Dow Jones Newswires 10-08-200826ET Copyright (c) 2020 Dow Jones & Company, Inc.