Silence Therapeutics Acquires Minority Stake in Arrowhead Pharmaceuticals.
M2 EQUITYBITES-January 17, 2017-Silence Therapeutics Acquires Minority Stake in Arrowhead Pharmaceuticals
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17 January 2017 - UK-based novel RNA therapeutics developer Silence Therapeutics plc (AIM: SLN) has acquired an 8.4% stake in US-based drugmaker Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) for a total cash consideration of USD 9.6m, the company said.
In the purchase, Silence Therapeutics bought 6,006,359 common shares of Arrowhead.
Since the capital raise of May 2015, Silence has been actively evaluating a number of RNAi assets, including technologies within both listed and unlisted RNAi companies.
Arrowhead develops medicines to treat intractable diseases by silencing the genes that cause them by means of a broad portfolio of RNA chemistries and efficient modes of delivery.
Silence said it believes that Arrowhead's IP, technology and pipeline is among the leading platform technologies in a sector that promises huge potential advances by generating novel medicines.
The company has acquired the equity position in order to facilitate future discussions regarding a possible transaction with Arrowhead, which could include, but is not limited to, product licensing, R/D collaboration, technology sharing or a potential corporate transaction.
Silence and Arrowhead are not currently engaged in any discussions regarding a possible transaction. Silence will update the market at the appropriate time should any discussions progress to a transaction.
The company acquired the stake using its existing cash resources.
This stake will not be consolidated and will be held as an investment asset on the company's balance sheet, as such there are no profits to attribute to the assets being held. There will be no contribution from the investment to Silence's net loss. The company confirms that it reported net cash of GBP 47.6 m as at 30 June in its interim results.
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