Hold Rating on Sarepta Therapeutics Amid Strategic Sale and siRNA Data UncertaintyWe view Sarepta's (SRPT, MP) decision to sell its entire stake in Arrowhead (ARWR, MP, Foroohar) as a prudent move to shore up the balance sheet; however, we think more work needs to be done, and wonder what the readthrough (if any) is for the upcoming siRNA data in 2H25. As part of the agreement with ARWR that was announced last year (here), SRPT made a $325M equity investment in ARWR at $27.25 per share (11,926,301 shares). The agreement became effective on and was subject to a 180-day lock-up period. Thus, considering the recent turmoil with the Elevidys program, we knew a potential sale of the equity stake was possible (especially considering our concerns regarding the balance sheet [B/S] and the company's ability to pay the 2027 convert). As disclosed yesterday, SRPT sold 9,265,312 shares of ARWR stock and expects to receive at least $174M in gross proceeds.