Company: SRPT
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-029973
Chunk: 454

Company: Sarepta Therapeutics, Inc.
Filing Date: 2025-02-28
Form: 10-K
Item: Item 9A
Chunk 454
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, 2023 and 2022, the Company exercised options in a research and option agreement and recognized $7.5 million and $8.5 million, respectively, of up-front expense as research and development expense in the accompanying consolidated statements of comprehensive income (loss), separately from the research, option and milestone expense listed above, with no similar activity for the year ended December 31, 2024. Milestone ObligationsIncluding the agreements discussed above, the Company has license and collaboration agreements in place for which it could be obligated to pay, in addition to the payment of up-front fees upon execution of the agreements, certain milestone payments as a product candidate proceeds from the submission of an investigational new drug application through approval for commercial sale and beyond. As of December 31, 2024, the Company may be obligated to make up to $2.3 billion of future development, regulatory, commercial, and up-front royalty payments associated with its collaboration and license agreements. These obligations exclude potential future option and milestone payments for options that have yet to be exercised within agreements entered into by the Company as of December 31, 2024, as well as the Arrowhead Agreement that had not yet closed as of December 31, 2024, which are discussed above. For the years ended December 31, 2023 and 2022, the Company recognized approximately $13.2 million and $32.6 million relating to certain up-front, milestone, settlement and other payments as research and development expense, respectively, under these agreements, with no similar activity for the year ended December 31, 2024.

4. GAIN FROM SALE OF PRIORITY REVIEW VOUCHERIn June 2023, the Company entered into an agreement to sell the rare pediatric disease Priority Review Voucher (the “ELEVIDYS PRV”) it received from the FDA in connection with the approval of ELEVIDYS for consideration of $102.0 million, with no commission costs. The closing of the transaction was not subject to the conditions set forth under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and closed in June 2023. The net proceeds were recorded as a gain from sale of the ELEVIDYS PRV during the year ended December 31, 2023, as it did not have a carrying value at the time of the sale.

5. FAIR VALUE MEASUREMENTSThe tables below present information about the Company’s financial assets and