Arrowhead Pharmaceuticals Secures $500 Million Financing Deal With Sixth Street

Pasadena-based Arrowhead Pharmaceuticals, a developer of RNA interference therapeutics, has entered into a $500 million strategic financing agreement with international  private capital investment platform Sixth Street, the company announced. The deal provides Arrowhead with significant long-term, non-dilutive capital to fund innovation and growth opportunities across its pipeline of RNA interference therapeutics.

The senior secured credit facility includes $400 million funded at close, with an additional $100 million available at Arrowhead’s option during the seven-year term, subject to mutual agreement between Sixth Street and Arrowhead, a statement from Arrowhead Pharmaceuticals said.

Christopher Anzalone, Arrowhead President and CEO, said the deal allows the company to confidently build commercial capabilities for its first launch in 2025.

“This transaction is non-dilutive and has an attractive repayment structure, which largely aligns outflows with future inflows, allowing us to keep more cash in the business at a critical time of growth,” Anzalone said.

The facility is designed to support the potential 2025 launch of plozasiran, Arrowhead’s treatment for familial chylomicronemia syndrome.

Familial chylomicronemia syndrome (FCS) is sometimes known as lipoprotein lipase deficiency (LPLD), Fredrickson Type 1 hyperlipoproteinemia, or familial hypertriglyceridemia. It is a hereditary, serious disease that prevents the body from breaking down fats. The condition leads to very high triglycerides, which in turn causes stomach pain and deposits of fat under the skin, and which can lead to problems with the pancreas and liver, which in turn can lead to diabetes.

The financing deal also expands possibilities to fund innovation and growth across Arrowhead’s robust and diverse pipeline of RNA interference therapeutics.

Jeff Pootoolal, Partner at Sixth Street, and Michael Reslinski, Managing Director, expressed confidence in Arrowhead’s platform technology and pipeline assets.

“We are pleased to utilize our firm’s scale, expertise and flexibility to help Arrowhead meet its strategic objectives through this innovative financing solution, and we hope to continue strengthening our relationship with the company as it rapidly becomes one of the most exciting emerging commercial-stage biopharmaceutical companies,” they said in a joint statement. 

The credit facility matures on Aug. 7, 2031, bearing an annual interest rate of 15%, with all principal due on the maturity date.

Arrowhead retains the right to prepay loans at any time and is required to partially repay loans with proceeds from certain transactions, including partnership payments and commercial revenue.

The facility includes flexible repayment mechanics during the seven-year term, providing important risk-sharing features.

TD Cowen acted as financial advisor to Arrowhead, while Gibson, Dunn & Crutcher LLP served as legal advisor. Proskauer Rose LLP and Mintz, Levin, Cohn, Ferris, Glovsky & Popeo, PC acted as legal advisors to Sixth Street.