Company: ARWR
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001628280-25-038858
Chunk: 78

Company: ARROWHEAD PHARMACEUTICALS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 the underlying milestone events are achieved as achievement of the milestone events are highly susceptible to factors outside of the entity's influence and therefore there is a possibility that the milestone event will not be achieved.  The Company is also eligible to receive sales milestone payments between $500.0 million and $700.0 million per program as well as tiered royalties on net sales of licensed products of up to the low double digits, subject to the terms and conditions of the Sarepta Collaboration Agreement. The Company has applied the sales-based scope exception to the sales milestones and the royalty-based payments.The Sarepta Collaboration Agreement commenced in February 2025 and may be terminated by either party in the event of a material breach as defined therein. In addition, Sarepta may voluntarily terminate the Sarepta Collaboration Agreement with 30 days' written notice to the Company if terminated prior to any regulatory approval of a licensed product. Unless earlier terminated, the Sarepta Collaboration Agreement expires on a product-by-product and country-by-country basis, upon the date of expiration of the relevant royalty term for such product in such country.As of June 30, 2025, the Company recorded $570.3 million in revenue from Sarepta, $9.7 million in accounts receivable and $23.0 million in deferred revenue. The recognition of the remaining revenue for the performance obligations is dependent upon the time it takes to complete the respective research and development activities and in consideration of the timing of the selection of the C3 programs.

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NOTE 3. BALANCE SHEET ACCOUNTS

Property, Plant and EquipmentThe following table summarizes the Company’s major classes of property, plant and equipment: June 30, 2025September 30, 2024(in thousands) Land$2,996 $2,996 Buildings249,245 75,988 Research equipment59,561 65,353 Manufacturing equipment16,548 — Furniture5,594 5,594 Computers and software1,059 981 Leasehold improvements104,403 104,410 Construction in progress15,872 188,731 455,278 444,053 Less: Accumulated depreciation and amortization(74,230)(58,021)Property, plant and equipment, net$381,048 $386,032 Depreciation and amortization expense for property, plant and equipment for the three months ended June 30, 2025 and