Arrowhead Pharmaceuticals Announces Completion of Global Licensing and Collaboration Agreement with Novartis
Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR), a leading biopharmaceutical company focused on developing innovative RNA interference (RNAi) therapeutics, announced today that its previously disclosed global licensing and collaboration agreement with Novartis has officially closed. The agreement, which was initially announced on September 2, 2025, became effective following the expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as well as satisfaction of other customary closing conditions.
This milestone marks a significant step forward in Arrowhead’s strategic efforts to advance its Targeted RNAi Molecule (TRiMTM) platform, which is designed to precisely silence disease-causing genes. The collaboration with Novartis provides Arrowhead with the resources and expertise of a global pharmaceutical leader to accelerate the development of potential treatments for serious neurological diseases, beginning with Parkinson’s disease.
Details of the License and Collaboration Agreement
Under the terms of the agreement, Novartis has obtained an exclusive worldwide license to research, develop, manufacture, and commercialize ARO-SNCA, a preclinical-stage program leveraging Arrowhead’s proprietary TRiMTM platform. The TRiMTM technology is specifically designed for subcutaneous administration and targeted delivery to the central nervous system (CNS). ARO-SNCA targets the gene responsible for producing alpha-synuclein, a protein closely associated with the development and progression of Parkinson’s disease as well as other synucleinopathies, a class of neurodegenerative disorders.
This collaboration is structured to allow Novartis the flexibility to select additional research targets beyond Arrowhead’s current pipeline. These targets may also be developed using the TRiMTM platform, enabling the partnership to explore new opportunities across multiple disease areas while leveraging Arrowhead’s innovative RNAi technology.
Under the agreement, Arrowhead will conduct and complete the preclinical research necessary to support a clinical trial application (CTA) filing for all licensed programs. Once this stage is complete, Novartis will assume full responsibility for subsequent development, manufacturing, medical affairs, and commercialization activities. This delineation of responsibilities allows Arrowhead to focus on its core expertise in RNAi technology and preclinical research while benefiting from Novartis’ extensive global development and commercialization capabilities.
Financial Terms of the Agreement
The financial terms of the collaboration reflect the significant potential of the licensed programs. Arrowhead received a $200 million upfront payment from Novartis upon closing. In addition, Arrowhead is eligible to receive development, regulatory, and sales milestone payments that could total up to $2 billion, contingent upon achieving specified progress and commercial success. Beyond milestone payments, Arrowhead may also receive tiered royalties on commercial sales of licensed products, potentially reaching the low double-digit range.
These financial terms provide Arrowhead with immediate capital to continue its research and platform expansion while offering the potential for substantial long-term returns if the programs achieve clinical and commercial success. The structure of the deal also underscores the strategic value of Arrowhead’s TRiMTM platform, which has attracted interest from one of the world’s leading pharmaceutical companies.
Strategic Significance for Arrowhead
The completion of this agreement represents a major milestone for Arrowhead Pharmaceuticals and its shareholders. By partnering with Novartis, Arrowhead gains access to a global network of scientific, clinical, and commercial resources that can help accelerate the development of RNAi therapeutics targeting CNS diseases. Parkinson’s disease, which currently affects millions worldwide and lacks a disease-modifying treatment, represents a significant unmet medical need. The collaboration enables Arrowhead to advance its pioneering approach toward potentially transformative therapies for patients suffering from this debilitating condition.
Moreover, the agreement reinforces Arrowhead’s strategic vision of leveraging its TRiMTM platform to create a broad pipeline of RNAi-based therapies. By allowing Novartis to select additional targets outside of Arrowhead’s existing pipeline, the collaboration opens the door to potential applications in other therapeutic areas, expanding the platform’s impact and commercial potential.
About Arrowhead’s TRiMTM Platform
Arrowhead’s TRiMTM platform is designed to deliver targeted RNAi molecules to specific tissues and cells, enabling precise gene silencing with the goal of addressing the underlying cause of disease. Unlike traditional small-molecule or biologic therapies, RNAi therapeutics can directly inhibit the expression of disease-causing genes, offering the potential for more effective and durable treatment options.
The platform has been engineered for subcutaneous delivery and CNS targeting, overcoming one of the key challenges in RNAi therapeutics: efficient delivery to the brain. By combining targeted delivery with potent gene-silencing capabilities, the TRiMTM platform represents a versatile and highly promising tool for developing treatments for complex neurological disorders.
About Parkinson’s Disease and Synucleinopathies
Parkinson’s disease is a progressive neurodegenerative disorder characterized by motor symptoms such as tremors, rigidity, and bradykinesia, as well as non-motor symptoms including cognitive impairment and sleep disturbances. Current treatments primarily address symptoms rather than the underlying disease process. Alpha-synuclein, a protein that aggregates abnormally in the brains of Parkinson’s patients, is considered a key driver of disease pathology. Therapies that reduce alpha-synuclein levels or prevent its aggregation have the potential to slow or halt disease progression, representing a significant unmet need in the field of neurology.
Synucleinopathies are a broader class of neurodegenerative diseases that involve abnormal accumulation of alpha-synuclein in the nervous system. This includes disorders such as multiple system atrophy (MSA) and dementia with Lewy bodies (DLB). Arrowhead’s collaboration with Novartis positions both companies to explore therapies that could address these challenging conditions.
